ERF Supplement 3Q16 - FINAL - JPMorgan Chase · Title: ERF Supplement 3Q16 - FINAL Created Date: 201601013183

EARNINGS RELEASE FINANCIAL SUPPLEMENT

THIRD QUARTER 2016

JPMORGAN CHASE & CO.TABLE OF CONTENTS

Page(s)Consolidated ResultsConsolidated Financial Highlights 2–3Consolidated Statements of Income 4Consolidated Balance Sheets 5Condensed Average Balance Sheets and Annualized Yields 6Reconciliation from Reported to Managed Basis 7Segment Results - Managed Basis 8Capital and Other Selected Balance Sheet Items 9Earnings Per Share and Related Information 10

Business Segment ResultsConsumer & Community Banking 11–14Corporate & Investment Bank 15–17Commercial Banking 18–19Asset Management 20–22Corporate 23

Credit-Related Information 24–27

Non-GAAP Financial Measures, Key Performance Measures and Other Notes 28Glossary of Terms (a)

(a) Refer to the Glossary of Terms on pages 311–315 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Annual Report”) and the Glossary of Terms and Line of Business Metrics on pages 169–176 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016.

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JPMORGAN CHASE & CO.

CONSOLIDATED FINANCIAL HIGHLIGHTS(in millions, except per share and ratio data)

QUARTERLY TRENDS NINE MONTHS ENDED SEPTEMBER 30,3Q16 Change 2016 Change

SELECTED INCOME STATEMENT DATA 3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015Reported BasisTotal net revenue $ 24,673 $ 24,380 $ 23,239 $ 22,885 $ 22,780 1% 8% $ 72,292 $ 70,658 2%Total noninterest expense 14,463 13,638 13,837 14,263 15,368 6 (6) 41,938 44,751 (6)Pre-provision profit 10,210 10,742 9,402 8,622 7,412 (5) 38 30,354 25,907 17Provision for credit losses 1,271 1,402 1,824 1,251 682 (9) 86 4,497 2,576 75

NET INCOME 6,286 6,200 5,520 5,434 6,804 1 (8) 18,006 19,008 (5)

Managed Basis (a)Total net revenue 25,512 25,214 24,083 23,747 23,535 1 8 74,809 72,886 3Total noninterest expense 14,463 13,638 13,837 14,263 15,368 6 (6) 41,938 44,751 (6)Pre-provision profit 11,049 11,576 10,246 9,484 8,167 (5) 35 32,871 28,135 17Provision for credit losses 1,271 1,402 1,824 1,251 682 (9) 86 4,497 2,576 75

NET INCOME 6,286 6,200 5,520 5,434 6,804 1 (8) 18,006 19,008 (5)

EARNINGS PER SHARE DATANet income: Basic $ 1.60 $ 1.56 $ 1.36 $ 1.34 $ 1.70 3 (6) $ 4.51 $ 4.72 (4)

Diluted 1.58 1.55 1.35 1.32 1.68 2 (6) 4.48 4.68 (4)Average shares: Basic 3,597.4 3,635.8 3,669.9 3,674.2 3,694.4 (1) (3) 3,634.4 3,709.2 (2)

Diluted 3,629.6 3,666.5 3,696.9 3,704.6 3,725.6 (1) (3) 3,664.3 3,742.2 (2)

MARKET AND PER COMMON SHARE DATAMarket capitalization $ 238,277 $ 224,449 $ 216,547 $ 241,899 $ 224,438 6 6 $ 238,277 $ 224,438 6Common shares at period-end 3,578.3 3,612.0 3,656.7 3,663.5 3,681.1 (1) (3) 3,578.3 3,681.1 (3)Closing share price (b) $ 66.59 $ 62.14 $ 59.22 $ 66.03 $ 60.97 7 9 $ 66.59 $ 60.97 9Book value per share 63.79 62.67 61.28 60.46 59.67 2 7 63.79 59.67 7Tangible book value per share (c) 51.23 50.21 48.96 48.13 47.36 2 8 51.23 47.36 8Cash dividends declared per share 0.48 0.48 (g) 0.44 0.44 0.44 — 9 1.40 (g) 1.28 9

FINANCIAL RATIOS (d)Return on common equity (“ROE”) 10% 10% 9% 9% 12% 10% 11%Return on tangible common equity (“ROTCE”) (c) 13 13 12 11 15 13 14Return on assets 1.01 1.02 0.93 0.90 1.11 0.99 1.02

High quality liquid assets (“HQLA”) (in billions) (e) $ 539 (h) $ 516 $ 505 $ 496 $ 505 4 7 $ 539 (h) $ 505 7

CAPITAL RATIOS (f)Common equity Tier 1 (“CET1”) capital ratio 12.0% (h) 12.0% 11.9% 11.8% 11.5% 12.0% (h) 11.5%Tier 1 capital ratio 13.6 (h) 13.6 13.5 13.5 13.3 13.6 (h) 13.3Total capital ratio 15.1 (h) 15.2 15.1 15.1 14.9 15.1 (h) 14.9Tier 1 leverage ratio 8.5 (h) 8.5 8.6 8.5 8.4 8.5 (h) 8.4

Note: Effective January 1, 2016, the Firm adopted new accounting guidance related to (1) the recognition and measurement of debit valuation adjustments (“DVA”) on financial liabilities where the fair value option has been elected, and (2) the accounting for share-based payments. For additional information, see Notes 1 and 2 on page 28.

(a) For a further discussion of managed basis, see Reconciliation from Reported to Managed Basis on page 7.(b) Share price shown is from the New York Stock Exchange.(c) Tangible book value per share and ROTCE are key financial performance measures. Tangible book value per share represents tangible common equity (“TCE”) divided by common shares at period-end. ROTCE measures the Firm’s annualized earnings as a percentage of

average TCE. For further discussion of these measures, see page 28.(d) Quarterly ratios are based upon annualized amounts.(e) HQLA represents the amount of assets that qualify for inclusion in the liquidity coverage ratio under the U.S. rule (“U.S. LCR”). For additional information on HQLA and LCR, see page 160 of the 2015 Annual Report, and page 70 of the Firm's Quarterly Report on Form 10-Q for

the quarterly period ended June 30, 2016.(f) Ratios presented are calculated under the Basel III Transitional capital rules and represent the Collins Floor. See footnote (a) on page 9 for additional information on Basel III and the Collins Floor.(g) On May 17, 2016, the Board of Directors increased the quarterly common stock dividend from $0.44 to $0.48 per share.(h) Estimated.

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CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED(in millions, except ratio and headcount data)


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015SELECTED BALANCE SHEET DATA (period-end)Total assets $2,521,029 $2,466,096 $2,423,808 $2,351,698 $2,416,635 2% 4% $2,521,029 $2,416,635 4%Loans:

Consumer, excluding credit card loans 363,796 361,305 354,192 344,821 331,969 1 10 363,796 331,969 10Credit card loans 133,435 131,591 126,090 131,463 126,979 1 5 133,435 126,979 5Wholesale loans 390,823 379,908 367,031 361,015 350,509 3 12 390,823 350,509 12

Total Loans 888,054 872,804 847,313 837,299 809,457 2 10 888,054 809,457 10 Core loans (a) 795,077 775,813 746,196 732,093 698,988 2 14 795,077 698,988 14

Core loans (average) (a) 779,383 760,721 737,297 715,282 680,224 2 15 759,207 655,753 16

Deposits:U.S. offices:

Noninterest-bearing 409,912 393,294 383,282 392,721 404,984 4 1 409,912 404,984 1Interest-bearing 722,294 695,763 695,667 663,004 624,014 4 16 722,294 624,014 16

Non-U.S. offices:Noninterest-bearing 19,397 20,980 20,913 18,921 20,174 (8) (4) 19,397 20,174 (4)Interest-bearing 224,535 220,921 221,954 205,069 223,934 2 — 224,535 223,934 —

Total deposits 1,376,138 1,330,958 1,321,816 1,279,715 1,273,106 3 8 1,376,138 1,273,106 8

Long-term debt (b) 309,418 295,627 290,754 288,651 292,503 5 6 309,418 292,503 6Common stockholders’ equity 228,263 226,355 224,089 221,505 219,660 1 4 228,263 219,660 4Total stockholders’ equity 254,331 252,423 250,157 247,573 245,728 1 4 254,331 245,728 4

Loans-to-deposits ratio 65% 66% 64% 65% 64% 65% 64%

Headcount 242,315 240,046 237,420 234,598 235,678 1 3 242,315 235,678 3

95% CONFIDENCE LEVEL - TOTAL VaRAverage VaR(c) $ 43 $ 45 $ 54 $ 49 $ 54 (4) (20) $ 47 $ 47 —

LINE OF BUSINESS NET REVENUE (d)Consumer & Community Banking $ 11,328 $ 11,451 $ 11,117 $ 11,222 $ 10,879 (1) 4 $ 33,896 $ 32,598 4Corporate & Investment Bank 9,455 9,165 8,135 7,069 8,168 3 16 26,755 26,473 1Commercial Banking 1,870 1,817 1,803 1,760 1,644 3 14 5,490 5,125 7Asset Management 3,047 2,939 2,972 3,045 2,894 4 5 8,958 9,074 (1)Corporate (188) (158) 56 651 (50) (19) (276) (290) (384) 24

TOTAL NET REVENUE $ 25,512 $ 25,214 $ 24,083 $ 23,747 $ 23,535 1 8 $ 74,809 $ 72,886 3

LINE OF BUSINESS NET INCOMEConsumer & Community Banking $ 2,204 $ 2,656 $ 2,490 $ 2,407 $ 2,630 (17) (16) $ 7,350 $ 7,382 —Corporate & Investment Bank 2,912 2,493 1,979 1,748 1,464 17 99 7,384 6,342 16Commercial Banking 778 696 496 550 518 12 50 1,970 1,641 20Asset Management 557 521 587 507 475 7 17 1,665 1,428 17Corporate (165) (166) (32) 222 1,717 1 NM (363) 2,215 NM

NET INCOME $ 6,286 $ 6,200 $ 5,520 $ 5,434 $ 6,804 1 (8) $ 18,006 $ 19,008 (5)

(a) Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, see page 28.(b) Included unsecured long-term debt of $226.8 billion, $220.6 billion, $216.1 billion, $211.8 billion and $214.6 billion for the periods ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively.(c) As part of the Firm’s continuous evaluation and periodic enhancement of its market risk measures, during the third quarter of 2016 the Firm refined the scope of positions included in risk management VaR. In particular, certain private equity positions in CIB, exposure arising

from non-U.S. dollar-denominated funding in Corporate, as well as seed capital and co-investments in Asset Management were removed from the VaR calculation. Commencing with the third quarter of 2016, exposure arising from these positions is captured using other sensitivity-based measures, such as a 10% decline in market value or a 1 basis point parallel shift in spreads, as appropriate, and will be separately reported in the Firm's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016. The Firm believes this refinement to its reported VaR measures more appropriately captures the risk of its market risk sensitive positions. This refinement resulted in a reduction in average Total VaR of $7 million for the three months ended September 30, 2016. For information regarding CIB VaR, see page 17.

(d) For a further discussion of managed basis, see Reconciliation from Reported to Managed Basis on page 7.

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CONSOLIDATED STATEMENTS OF INCOME(in millions, except per share and ratio data)


REVENUE 3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015Investment banking fees $ 1,866 $ 1,644 $ 1,333 $ 1,520 $ 1,604 14% 16% $ 4,843 $ 5,231 (7)%Principal transactions 3,451 2,976 2,679 1,552 2,367 16 46 9,106 8,856 3Lending- and deposit-related fees 1,484 1,403 1,403 1,450 1,463 6 1 4,290 4,244 1Asset management, administration and commissions 3,597 3,681 3,624 3,842 3,845 (2) (6) 10,902 11,667 (7)Securities gains 64 21 51 73 33 205 94 136 129 5Mortgage fees and related income 624 689 667 556 469 (9) 33 1,980 1,957 1Card income 1,202 1,358 1,301 1,431 1,447 (11) (17) 3,861 4,493 (14)Other income 782 1,261 801 1,236 628 (38) 25 2,844 1,796 58

Noninterest revenue 13,070 13,033 11,859 11,660 11,856 — 10 37,962 38,373 (1)Interest income 14,070 13,813 13,552 13,155 12,739 2 10 41,435 37,818 10Interest expense 2,467 2,466 2,172 1,930 1,815 — 36 7,105 5,533 28

Net interest income 11,603 11,347 11,380 11,225 10,924 2 6 34,330 32,285 6TOTAL NET REVENUE 24,673 24,380 23,239 22,885 22,780 1 8 72,292 70,658 2

Provision for credit losses 1,271 1,402 1,824 1,251 682 (9) 86 4,497 2,576 75

NONINTEREST EXPENSECompensation expense 7,669 7,778 7,660 6,693 7,320 (1) 5 23,107 23,057 —Occupancy expense 899 899 883 947 965 — (7) 2,681 2,821 (5)Technology, communications and equipment expense 1,741 1,665 1,618 1,657 1,546 5 13 5,024 4,536 11Professional and outside services 1,665 1,700 1,548 1,824 1,776 (2) (6) 4,913 5,178 (5)Marketing 825 672 703 771 704 23 17 2,200 1,937 14Other expense (a) 1,664 924 1,425 2,371 3,057 80 (46) 4,013 7,222 (44)

TOTAL NONINTEREST EXPENSE 14,463 13,638 13,837 14,263 15,368 6 (6) 41,938 44,751 (6)Income before income tax expense 8,939 9,340 7,578 7,371 6,730 (4) 33 25,857 23,331 11

Income tax expense/(benefit) (b) 2,653 3,140 2,058 1,937 (74) (16) NM 7,851 4,323 82NET INCOME $ 6,286 $ 6,200 $ 5,520 $ 5,434 $ 6,804 1 (8) $ 18,006 $ 19,008 (5)

NET INCOME PER COMMON SHARE DATABasic earnings per share $ 1.60 $ 1.56 $ 1.36 $ 1.34 $ 1.70 3 (6) $ 4.51 $ 4.72 (4)Diluted earnings per share 1.58 1.55 1.35 1.32 1.68 2 (6) 4.48 4.68 (4)

FINANCIAL RATIOSReturn on common equity (c) 10% 10% 9% 9% 12% 10% 11%Return on tangible common equity (c)(d) 13 13 12 11 15 13 14Return on assets (c) 1.01 1.02 0.93 0.90 1.11 0.99 1.02Effective income tax rate (b) 29.7 33.6 27.2 26.3 (1.1) 30.4 18.5Overhead ratio 59 56 60 62 67 58 63

See notes 1 and 2 on page 28.

(a) Included Firmwide legal expense/(benefit) of $(71) million, $(430) million, $(46) million, $644 million and $1.3 billion for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively; and $(547) million and $2.3 billion for the nine months ended September 30, 2016, and 2015, respectively.

(b) The three and nine months ended September 30, 2015 reflected tax benefits of $2.2 billion and 2.7 billion, respectively, which reduced the Firm’s effective tax rate by 32.0% and 11.7%, respectively. The recognition of tax benefits in 2015 resulted from the resolution of various tax audits, as well as the release of U.S. deferred taxes associated with the restructuring of certain non-U.S. entities.

(c) Quarterly ratios are based upon annualized amounts.(d) For further discussion of ROTCE, see page 28.

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CONSOLIDATED BALANCE SHEETS(in millions)

Sep 30, 2016Change

Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Sep 30,2016 2016 2016 2015 2015 2016 2015

ASSETSCash and due from banks $ 21,390 $ 19,710 $ 18,212 $ 20,490 $ 21,258 9% 1%Deposits with banks 396,200 345,595 360,196 340,015 376,196 15 5Federal funds sold and securities purchased under

resale agreements 232,637 237,267 223,220 212,575 218,467 (2) 6Securities borrowed 109,197 103,225 102,937 98,721 105,668 6 3Trading assets:

Debt and equity instruments 309,258 302,347 295,944 284,162 293,040 2 6Derivative receivables 65,579 78,446 70,209 59,677 68,668 (16) (4)

Securities 272,401 278,610 285,323 290,827 306,660 (2) (11)Loans 888,054 872,804 847,313 837,299 809,457 2 10Less: Allowance for loan losses 14,204 14,227 13,994 13,555 13,466 — 5

Loans, net of allowance for loan losses 873,850 858,577 833,319 823,744 795,991 2 10Accrued interest and accounts receivable 64,333 64,911 57,649 46,605 57,926 (1) 11Premises and equipment 14,208 14,262 14,195 14,362 14,709 — (3)Goodwill 47,302 47,303 47,310 47,325 47,405 — —Mortgage servicing rights 4,937 5,072 5,658 6,608 6,716 (3) (26)Other intangible assets 887 917 940 1,015 1,036 (3) (14)Other assets 108,850 109,854 108,696 105,572 102,895 (1) 6

TOTAL ASSETS $ 2,521,029 $ 2,466,096 $ 2,423,808 $ 2,351,698 $ 2,416,635 2 4

LIABILITIESDeposits $ 1,376,138 $ 1,330,958 $ 1,321,816 $ 1,279,715 $ 1,273,106 3 8Federal funds purchased and securities loaned or sold

under repurchase agreements 168,491 166,044 160,999 152,678 180,319 1 (7)Commercial paper 12,258 17,279 17,490 15,562 19,656 (29) (38)Other borrowed funds 24,479 19,945 19,703 21,105 27,174 23 (10)Trading liabilities:

Debt and equity instruments 95,126 101,194 87,963 74,107 84,334 (6) 13Derivative payables 48,143 57,764 59,319 52,790 57,140 (17) (16)

Accounts payable and other liabilities 190,412 184,635 176,934 177,638 187,986 3 1Beneficial interests issued by consolidated VIEs 42,233 40,227 38,673 41,879 48,689 5 (13)Long-term debt 309,418 295,627 290,754 288,651 292,503 5 6

TOTAL LIABILITIES 2,266,698 2,213,673 2,173,651 2,104,125 2,170,907 2 4

STOCKHOLDERS’ EQUITYPreferred stock 26,068 26,068 26,068 26,068 26,068 — —Common stock 4,105 4,105 4,105 4,105 4,105 — —Additional paid-in capital 92,103 91,974 91,782 92,500 92,316 — —Retained earnings 157,870 153,749 149,730 146,420 143,050 3 10Accumulated other comprehensive income 1,474 1,618 782 192 751 (9) 96Shares held in RSU Trust, at cost (21) (21) (21) (21) (21) — —Treasury stock, at cost (27,268) (25,070) (22,289) (21,691) (20,541) (9) (33)

TOTAL STOCKHOLDERS’ EQUITY 254,331 252,423 250,157 247,573 245,728 1 4TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,521,029 $ 2,466,096 $ 2,423,808 $ 2,351,698 $ 2,416,635 2 4


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CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS(in millions, except rates)


AVERAGE BALANCES 3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015ASSETSDeposits with banks $ 409,176 $ 379,001 $ 364,200 $ 382,098 $ 413,038 8% (1)% $ 384,217 $ 443,420 (13)%Federal funds sold and securities purchased under

resale agreements 196,657 201,871 204,992 202,205 201,673 (3) (2) 201,157 208,132 (3)Securities borrowed 102,790 101,669 103,461 104,672 98,193 1 5 102,640 105,475 (3)Trading assets - debt instruments 219,816 215,780 208,315 204,365 202,388 2 9 214,656 207,065 4Securities 272,993 280,041 284,488 297,648 307,364 (3) (11) 279,152 321,990 (13)Loans 874,396 859,727 840,526 823,057 793,584 2 10 858,275 775,274 11Other assets (a) 40,665 41,436 38,001 37,012 40,650 (2) — 40,036 39,417 2

Total interest-earning assets 2,116,493 2,079,525 2,043,983 2,051,057 2,056,890 2 3 2,080,133 2,100,773 (1)Trading assets - equity instruments 98,714 99,626 85,280 95,609 96,868 (1) 2 94,555 108,819 (13)Trading assets - derivative receivables 72,520 69,823 70,651 66,043 69,646 4 4 71,004 75,732 (6)All other noninterest-earning assets 189,235 192,215 195,007 195,544 197,812 (2) (4) 192,142 204,695 (6)

TOTAL ASSETS $ 2,476,962 $ 2,441,189 $ 2,394,921 $ 2,408,253 $ 2,421,216 1 2 $ 2,437,834 $ 2,490,019 (2)LIABILITIESInterest-bearing deposits $ 929,122 $ 915,295 $ 884,082 $ 864,878 $ 852,219 2 9 $ 909,571 $ 875,164 4Federal funds purchased and securities loaned or

sold under repurchase agreements 180,098 176,855 171,246 181,995 188,006 2 (4) 176,081 196,054 (10)Commercial paper 13,798 17,462 17,537 17,952 26,167 (21) (47) 16,257 44,943 (64)Trading liabilities - debt, short-term and other liabilities (b) 196,247 200,141 196,233 196,154 198,876 (2) (1) 197,537 211,739 (7)Beneficial interests issued by consolidated VIEs 42,462 38,411 39,839 44,774 49,808 11 (15) 40,245 50,692 (21)Long-term debt 300,295 291,726 288,160 290,083 288,413 3 4 293,418 283,207 4

Total interest-bearing liabilities 1,662,022 1,639,890 1,597,097 1,595,836 1,603,489 1 4 1,633,109 1,661,799 (2)Noninterest-bearing deposits 408,853 400,671 399,186 412,575 418,742 2 (2) 402,925 426,802 (6)Trading liabilities - equity instruments 22,262 20,747 18,504 16,806 17,595 7 27 20,511 17,442 18Trading liabilities - derivative payables 54,552 54,048 60,591 57,053 61,754 1 (12) 56,390 67,298 (16)All other noninterest-bearing liabilities 77,116 75,336 71,914 80,366 76,895 2 — 74,797 78,932 (5)

TOTAL LIABILITIES 2,224,805 2,190,692 2,147,292 2,162,636 2,178,475 2 2 2,187,732 2,252,273 (3)Preferred stock 26,068 26,068 26,068 26,068 25,718 — 1 26,068 23,357 12Common stockholders’ equity 226,089 224,429 221,561 219,549 217,023 1 4 224,034 214,389 4

TOTAL STOCKHOLDERS’ EQUITY 252,157 250,497 247,629 245,617 242,741 1 4 250,102 237,746 5TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,476,962 $ 2,441,189 $ 2,394,921 $ 2,408,253 $ 2,421,216 1 2 $ 2,437,834 $ 2,490,019 (2)

AVERAGE RATES (c)INTEREST-EARNING ASSETSDeposits with banks 0.44 % 0.49 % 0.51 % 0.32 % 0.28 % 0.48 % 0.28 %Federal funds sold and securities purchased under

resale agreements 1.14 1.15 1.09 0.83 0.85 1.13 0.75Securities borrowed (d) (0.35) (0.38) (0.36) (0.51) (0.48) (0.36) (0.50)Trading assets - debt instruments 3.46 3.50 3.31 3.16 3.04 3.43 3.27Securities 2.95 2.95 2.98 3.11 2.85 2.96 2.81Loans 4.23 4.22 4.26 4.20 4.24 4.24 4.24Other assets (a) 2.14 2.06 2.04 1.71 1.67 2.08 1.67Total interest-earning assets 2.70 2.73 2.72 2.60 2.51 2.72 2.46

INTEREST-BEARING LIABILITIESInterest-bearing deposits 0.15 0.14 0.15 0.13 0.14 0.14 0.15Federal funds purchased and securities loaned or

sold under repurchase agreements 0.63 0.64 0.61 0.36 0.34 0.63 0.30Commercial paper 0.97 0.88 0.75 0.49 0.35 0.86 0.26Trading liabilities - debt, short-term and other liabilities (b) 0.58 0.63 0.47 0.33 0.26 0.56 0.29Beneficial interests issued by consolidated VIEs 1.26 1.24 1.14 0.99 0.92 1.22 0.85Long-term debt 1.84 1.92 1.70 1.62 1.50 1.82 1.54

Total interest-bearing liabilities 0.59 0.60 0.55 0.48 0.45 0.58 0.45

INTEREST RATE SPREAD 2.11 % 2.13 % 2.17 % 2.12 % 2.06 % 2.14 % 2.01 %NET YIELD ON INTEREST-EARNING ASSETS 2.24 % 2.25 % 2.30 % 2.23 % 2.16 % 2.26 % 2.11 %

(a) Includes margin loans.(b) Includes brokerage customer payables.(c) Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.(d) Negative yield is a result of increased client-driven demand for certain securities combined with the impact of low interest rates; this is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense and

reported within trading liabilities - debt, short-term and other liabilities.

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RECONCILIATION FROM REPORTED TO MANAGED BASIS(in millions, except ratios)

The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the U.S. (“U.S. GAAP”). That presentation, which is referred to as “reported” basis, provides the reader with an understanding of the Firm’s results that can be tracked consistently from year-to-year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results, including the overhead ratio, and the results of the lines of business on a “managed” basis, which are non-GAAP financial measures. For additional information on managed basis, refer to the notes on Non-GAAP Financial Measures on page 28.

The following summary table provides a reconciliation from reported U.S. GAAP results to managed basis.


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015OTHER INCOMEOther income - reported $ 782 $ 1,261 $ 801 $ 1,236 $ 628 (38)% 25% $ 2,844 $ 1,796 58%Fully taxable-equivalent adjustments (a) 540 529 551 575 477 2 13 1,620 1,405 15Other income - managed $ 1,322 $ 1,790 $ 1,352 $ 1,811 $ 1,105 (26) 20 $ 4,464 $ 3,201 39

TOTAL NONINTEREST REVENUETotal noninterest revenue - reported $ 13,070 $ 13,033 $ 11,859 $ 11,660 $ 11,856 — 10 $ 37,962 $ 38,373 (1)Fully taxable-equivalent adjustments (a) 540 529 551 575 477 2 13 1,620 1,405 15Total noninterest revenue - managed $ 13,610 $ 13,562 $ 12,410 $ 12,235 $ 12,333 — 10 $ 39,582 $ 39,778 —

NET INTEREST INCOMENet interest income - reported $ 11,603 $ 11,347 $ 11,380 $ 11,225 $ 10,924 2 6 $ 34,330 $ 32,285 6Fully taxable-equivalent adjustments (a) 299 305 293 287 278 (2) 8 897 823 9Net interest income - managed $ 11,902 $ 11,652 $ 11,673 $ 11,512 $ 11,202 2 6 $ 35,227 $ 33,108 6

TOTAL NET REVENUETotal net revenue - reported $ 24,673 $ 24,380 $ 23,239 $ 22,885 $ 22,780 1 8 $ 72,292 $ 70,658 2Fully taxable-equivalent adjustments (a) 839 834 844 862 755 1 11 2,517 2,228 13Total net revenue - managed $ 25,512 $ 25,214 $ 24,083 $ 23,747 $ 23,535 1 8 $ 74,809 $ 72,886 3

PRE-PROVISION PROFITPre-provision profit - reported $ 10,210 $ 10,742 $ 9,402 $ 8,622 $ 7,412 (5) 38 $ 30,354 $ 25,907 17Fully taxable-equivalent adjustments (a) 839 834 844 862 755 1 11 2,517 2,228 13Pre-provision profit - managed $ 11,049 $ 11,576 $ 10,246 $ 9,484 $ 8,167 (5) 35 $ 32,871 $ 28,135 17

INCOME BEFORE INCOME TAX EXPENSEIncome before income tax expense - reported $ 8,939 $ 9,340 $ 7,578 $ 7,371 $ 6,730 (4) 33 $ 25,857 $ 23,331 11Fully taxable-equivalent adjustments (a) 839 834 844 862 755 1 11 2,517 2,228 13Income before income tax expense - managed $ 9,778 $ 10,174 $ 8,422 $ 8,233 $ 7,485 (4) 31 $ 28,374 $ 25,559 11

INCOME TAX EXPENSEIncome tax expense/(benefit) - reported $ 2,653 $ 3,140 $ 2,058 $ 1,937 $ (74) (16) NM $ 7,851 $ 4,323 82Fully taxable-equivalent adjustments (a) 839 834 844 862 755 1 11 2,517 2,228 13Income tax expense - managed $ 3,492 $ 3,974 $ 2,902 $ 2,799 $ 681 (12) 413 $ 10,368 $ 6,551 58

OVERHEAD RATIOOverhead ratio - reported 59 % 56 % 60 % 62 % 67 % 58 % 63 %Overhead ratio - managed 57 54 57 60 65 56 61


(a) Predominantly recognized in the CIB and Commercial Banking (“CB”) business segments and Corporate.

Page 8


SEGMENT RESULTS - MANAGED BASIS(in millions)


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))Consumer & Community Banking $ 11,328 $ 11,451 $ 11,117 $ 11,222 $ 10,879 (1)% 4% $ 33,896 $ 32,598 4%Corporate & Investment Bank 9,455 9,165 8,135 7,069 8,168 3 16 26,755 26,473 1Commercial Banking 1,870 1,817 1,803 1,760 1,644 3 14 5,490 5,125 7Asset Management 3,047 2,939 2,972 3,045 2,894 4 5 8,958 9,074 (1)Corporate (188) (158) 56 651 (50) (19) (276) (290) (384) 24

TOTAL NET REVENUE $ 25,512 $ 25,214 $ 24,083 $ 23,747 $ 23,535 1 8 $ 74,809 $ 72,886 3

TOTAL NONINTEREST EXPENSEConsumer & Community Banking $ 6,510 $ 6,004 $ 6,088 $ 6,272 $ 6,237 8 4 $ 18,602 $ 18,637 —Corporate & Investment Bank 4,934 5,078 4,808 4,436 6,131 (3) (20) 14,820 16,925 (12)Commercial Banking 746 731 713 750 719 2 4 2,190 2,131 3Asset Management 2,130 2,098 2,075 2,196 2,109 2 1 6,303 6,690 (6)Corporate 143 (273) 153 609 172 NM (17) 23 368 (94)

TOTAL NONINTEREST EXPENSE $ 14,463 $ 13,638 $ 13,837 $ 14,263 $ 15,368 6 (6) $ 41,938 $ 44,751 (6)

PRE-PROVISION PROFIT/(LOSS)Consumer & Community Banking $ 4,818 $ 5,447 $ 5,029 $ 4,950 $ 4,642 (12) 4 $ 15,294 $ 13,961 10Corporate & Investment Bank 4,521 4,087 3,327 2,633 2,037 11 122 11,935 9,548 25Commercial Banking 1,124 1,086 1,090 1,010 925 3 22 3,300 2,994 10Asset Management 917 841 897 849 785 9 17 2,655 2,384 11Corporate (331) 115 (97) 42 (222) NM (49) (313) (752) 58

PRE-PROVISION PROFIT $ 11,049 $ 11,576 $ 10,246 $ 9,484 $ 8,167 (5) 35 $ 32,871 $ 28,135 17

PROVISION FOR CREDIT LOSSESConsumer & Community Banking $ 1,294 $ 1,201 $ 1,050 $ 1,038 $ 389 8 233 $ 3,545 $ 2,021 75Corporate & Investment Bank 67 235 459 81 232 (71) (71) 761 251 203Commercial Banking (121) (25) 304 117 82 (384) NM 158 325 (51)Asset Management 32 (8) 13 17 (17) NM NM 37 (13) NMCorporate (1) (1) (2) (2) (4) — 75 (4) (8) 50

PROVISION FOR CREDIT LOSSES $ 1,271 $ 1,402 $ 1,824 $ 1,251 $ 682 (9) 86 $ 4,497 $ 2,576 75

NET INCOMEConsumer & Community Banking $ 2,204 $ 2,656 $ 2,490 $ 2,407 $ 2,630 (17) (16) $ 7,350 $ 7,382 —Corporate & Investment Bank 2,912 2,493 1,979 1,748 1,464 17 99 7,384 6,342 16Commercial Banking 778 696 496 550 518 12 50 1,970 1,641 20Asset Management 557 521 587 507 475 7 17 1,665 1,428 17Corporate (165) (166) (32) 222 1,717 1 NM (363) 2,215 NM

TOTAL NET INCOME $ 6,286 $ 6,200 $ 5,520 $ 5,434 $ 6,804 1 (8) $ 18,006 $ 19,008 (5)


Page 9


CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS(in millions, except ratio data)

Sep 30, 2016Change NINE MONTHS ENDED SEPTEMBER 30,

Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Sep 30, 2016 Change2016 2016 2016 2015 2015 2016 2015 2016 2015 2015

CAPITAL (a)Risk-based capital metrics

Standardized TransitionalCET1 capital $ 181,606 (f) $ 179,593 $ 177,531 $ 175,398 $ 173,577 1% 5%Tier 1 capital 206,425 (f) 204,390 202,399 200,482 199,211 1 4Total capital 240,984 (f) 238,999 236,954 234,413 234,377 1 3Risk-weighted assets 1,483,136 (f) 1,469,430 1,470,741 1,465,262 1,503,370 1 (1)CET1 capital ratio 12.2% (f) 12.2% 12.1% 12.0% 11.5%Tier 1 capital ratio 13.9 (f) 13.9 13.8 13.7 13.3Total capital ratio 16.2 (f) 16.3 16.1 16.0 15.6

Advanced TransitionalCET1 capital $ 181,606 (f) 179,593 177,531 175,398 173,577 1 5Tier 1 capital 206,425 (f) 204,390 202,399 200,482 199,211 1 4Total capital 229,351 (f) 227,865 226,190 224,616 223,877 1 2Risk-weighted assets 1,514,416 (f) 1,497,509 1,497,870 1,485,336 1,502,685 1 1CET1 capital ratio 12.0% (f) 12.0% 11.9% 11.8% 11.6%Tier 1 capital ratio 13.6 (f) 13.6 13.5 13.5 13.3Total capital ratio 15.1 (f) 15.2 15.1 15.1 14.9

Leverage-based capital metricsAdjusted average assets (b) $2,427,418 (f) $2,391,819 $2,345,926 $2,358,471 $2,375,317 1 2Tier 1 leverage ratio 8.5% (f) 8.5% 8.6% 8.5% 8.4%SLR leverage exposure (c) $3,143,411 (f) $3,094,545 3,047,558 3,079,797 3,116,633 2 1SLR (c) 6.6% (f) 6.6% 6.6% 6.5% 6.4%

TANGIBLE COMMON EQUITY (period-end) (d)Common stockholders’ equity $ 228,263 $ 226,355 $ 224,089 $ 221,505 $ 219,660 1 4Less: Goodwill 47,302 47,303 47,310 47,325 47,405 — —Less: Other intangible assets 887 917 940 1,015 1,036 (3) (14)Add: Deferred tax liabilities (e) 3,232 3,220 3,205 3,148 3,105 — 4

Total tangible common equity $ 183,306 $ 181,355 $ 179,044 $ 176,313 $ 174,324 1 5

TANGIBLE COMMON EQUITY (average) (d)Common stockholders’ equity $ 226,089 $ 224,429 $ 221,561 $ 219,549 $ 217,023 1 4 $ 224,034 $ 214,389 4Less: Goodwill 47,302 47,309 47,332 47,377 47,428 — — 47,314 47,468 —Less: Other intangible assets 903 928 985 1,030 1,064 (3) (15) 938 1,112 (16)Add: Deferred tax liabilities (e) 3,226 3,213 3,177 3,127 2,991 — 8 3,205 2,909 10

Total tangible common equity $ 181,110 $ 179,405 $ 176,421 $ 174,269 $ 171,522 1 6 $ 178,987 $ 168,718 6

INTANGIBLE ASSETS (period-end)Goodwill $ 47,302 $ 47,303 $ 47,310 $ 47,325 $ 47,405 — —Mortgage servicing rights 4,937 5,072 5,658 6,608 6,716 (3) (26)Other intangible assets 887 917 940 1,015 1,036 (3) (14)

Total intangible assets $ 53,126 $ 53,292 $ 53,908 $ 54,948 $ 55,157 — (4)


(a) Basel III presents two comprehensive methodologies for calculating risk-weighted assets: a Standardized approach and an Advanced approach. As required by the Collins Amendment of the Wall Street Reform and Consumer Protection Act, the capital adequacy of the Firm is evaluated against the Basel III approach (Standardized or Advanced) that results, for each quarter, in the lower ratio (the “Collins Floor”). For further discussion of the implementation of Basel III, see Capital Management on pages 149-158 of the 2015 Annual Report, and on pages 63–69 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016.

(b) Adjusted average assets, for purposes of calculating leverage ratios, includes total quarterly average assets adjusted for on balance sheet assets that are subject to deduction from Tier 1 capital, predominately goodwill and other intangible assets. (c) The supplementary leverage ratio (“SLR”) under Basel III is defined as Tier 1 capital divided by the Firm’s total leverage exposure. Total leverage exposure is calculated by taking the Firm’s adjusted average assets as calculated for the Tier 1 leverage ratio, and adding certain

off-balance sheet exposures, such as undrawn commitments and derivatives potential future exposure.(d) For further discussion of TCE, see page 28.(e) Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted against goodwill and other intangibles when calculating TCE.(f) Estimated.

Page 10


EARNINGS PER SHARE AND RELATED INFORMATION(in millions, except per share and ratio data)


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015EARNINGS PER SHAREBasic earnings per share

Net income $ 6,286 $ 6,200 $ 5,520 $ 5,434 $ 6,804 1% (8)% $ 18,006 $ 19,008 (5)%Less: Preferred stock dividends 412 411 412 418 393 — 5 1,235 1,097 13

Net income applicable to common equity 5,874 5,789 5,108 5,016 6,411 1 (8) 16,771 17,911 (6)Less: Dividends and undistributed earnings allocated to

participating securities 127 123 117 108 141 3 (10) 368 413 (11)Net income applicable to common stockholders $ 5,747 $ 5,666 $ 4,991 $ 4,908 $ 6,270 1 (8) $ 16,403 $ 17,498 (6)

Total weighted-average basic shares outstanding 3,597.4 3,635.8 3,669.9 3,674.2 3,694.4 (1) (3) 3,634.4 3,709.2 (2)Net income per share $ 1.60 $ 1.56 $ 1.36 $ 1.34 $ 1.70 3 (6) $ 4.51 $ 4.72 (4)

Diluted earnings per shareNet income applicable to common stockholders $ 5,747 $ 5,666 $ 4,991 $ 4,908 $ 6,270 1 (8) $ 16,403 $ 17,498 (6)Total weighted-average basic shares outstanding 3,597.4 3,635.8 3,669.9 3,674.2 3,694.4 (1) (3) 3,634.4 3,709.2 (2)Add: Employee stock options, stock appreciation rights (“SARs”),warrants and performance share units (“PSUs”) 32.2 30.7 27.0 30.4 31.2 5 3 29.9 33.0 (9)

Total weighted-average diluted shares outstanding 3,629.6 3,666.5 3,696.9 3,704.6 3,725.6 (1) (3) 3,664.3 3,742.2 (2)Net income per share $ 1.58 $ 1.55 $ 1.35 $ 1.32 $ 1.68 2 (6) $ 4.48 $ 4.68 (4)

COMMON DIVIDENDSCash dividends declared per share $ 0.48 $ 0.48 (c) $ 0.44 $ 0.44 $ 0.44 — 9 $ 1.40 (c) $ 1.28 9Dividend payout ratio 30% 31% 32% 33% 26% 31% 27%

COMMON EQUITY REPURCHASE PROGRAM (a)Total shares of common stock repurchased 35.6 45.8 29.2 19.0 19.1 (22) 86 110.6 70.8 56Average price paid per share of common stock $ 64.46 $ 61.93 $ 58.17 $ 63.92 $ 65.30 4 (1) $ 61.75 $ 62.13 (1)Aggregate repurchases of common equity 2,295 2,840 1,696 1,219 1,248 (19) 84 6,831 4,397 55

EMPLOYEE ISSUANCEShares issued from treasury stock related to employee

stock-based compensation awards and employee stockpurchase plans 1.3 1.2 22.3 1.1 1.9 8 (32) 24.8 32.7 (24)

Net impact of employee issuances on stockholders’ equity (b) $ 226 $ 250 $ 366 $ 252 $ 248 (10) (9) $ 842 $ 871 (3)


(a) On June 29, 2016, the Firm announced, in connection with the release of its 2016 CCAR results, that it is authorized to repurchase up to $10.6 billion of common equity between July 1, 2016 and June 30, 2017, under a new equity repurchase program authorized by the Board of Directors.

(b) The net impact of employee issuances on stockholders’ equity is driven by the cost of equity compensation awards that is recognized over the applicable vesting periods. The cost is partially offset by tax impacts related to the distribution of shares and the exercise of employee stock options and SARs.

(c) On May 17, 2016, the Board of Directors increased the quarterly common stock dividend from $0.44 to $0.48 per share.

Page 11


CONSUMER & COMMUNITY BANKINGFINANCIAL HIGHLIGHTS(in millions, except ratio data)


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015INCOME STATEMENTREVENUELending- and deposit-related fees $ 841 $ 780 $ 769 $ 817 $ 836 8% 1% $ 2,390 $ 2,320 3%Asset management, administration and commissions 531 535 530 524 565 (1) (6) 1,596 1,648 (3)Mortgage fees and related income 624 689 667 556 469 (9) 33 1,980 1,955 1Card income 1,099 1,253 1,191 1,326 1,335 (12) (18) 3,543 4,165 (15)All other income 773 881 649 815 524 (12) 48 2,303 1,466 57

Noninterest revenue 3,868 4,138 3,806 4,038 3,729 (7) 4 11,812 11,554 2Net interest income 7,460 7,313 7,311 7,184 7,150 2 4 22,084 21,044 5

TOTAL NET REVENUE 11,328 11,451 11,117 11,222 10,879 (1) 4 33,896 32,598 4

Provision for credit losses 1,294 1,201 1,050 1,038 389 8 233 3,545 2,021 75

NONINTEREST EXPENSECompensation expense 2,453 2,420 2,382 2,349 2,413 1 2 7,255 7,421 (2)Noncompensation expense (a) 4,057 3,584 3,706 3,923 3,824 13 6 11,347 11,216 1

TOTAL NONINTEREST EXPENSE 6,510 6,004 6,088 6,272 6,237 8 4 18,602 18,637 —

Income before income tax expense 3,524 4,246 3,979 3,912 4,253 (17) (17) 11,749 11,940 (2)Income tax expense 1,320 1,590 1,489 1,505 1,623 (17) (19) 4,399 4,558 (3)

NET INCOME $ 2,204 $ 2,656 $ 2,490 $ 2,407 $ 2,630 (17) (16) $ 7,350 $ 7,382 —

REVENUE BY LINE OF BUSINESSConsumer & Business Banking $ 4,719 $ 4,616 $ 4,550 $ 4,587 $ 4,555 2 4 $ 13,885 $ 13,396 4Mortgage Banking 1,874 1,921 1,876 1,680 1,555 (2) 21 5,671 5,137 10Card, Commerce Solutions & Auto 4,735 4,914 4,691 4,955 4,769 (4) (1) 14,340 14,065 2

MORTGAGE FEES AND RELATED INCOME DETAILS:Net production revenue 247 261 162 123 176 (5) 40 670 646 4Net mortgage servicing revenue (b) 377 428 505 433 293 (12) 29 1,310 1,309 —Mortgage fees and related income $ 624 $ 689 $ 667 $ 556 $ 469 (9) 33 $ 1,980 $ 1,955 1

FINANCIAL RATIOSROE 16 % 20 % 19 % 18 % 20 % 18 % 18 %Overhead ratio 57 52 55 56 57 55 57

(a) Included operating lease depreciation expense of $504 million, $460 million, $432 million, $401 million, and $372 million for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively, and $1.4 billion and $1.0 billion for the nine months ended September 30, 2016, and 2015, respectively.

(b) Included MSR risk management of $38 million, $73 million, $129 million, $4 million, and $(123) million for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively, and $240 million and $(121) million for the nine months ended September 30, 2016 and 2015, respectively.

Page 12


CONSUMER & COMMUNITY BANKINGFINANCIAL HIGHLIGHTS, CONTINUED(in millions, except headcount data)


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015SELECTED BALANCE SHEET DATA (period-end)Total assets $ 521,276 $ 519,187 $ 505,071 $ 502,652 $ 484,253 —% 8% $ 521,276 $ 484,253 8%

Loans:Consumer & Business Banking 23,846 23,588 22,889 22,730 22,346 1 7 23,846 22,346 7Home equity 52,445 54,569 56,627 58,734 60,849 (4) (14) 52,445 60,849 (14)Residential mortgage and other 181,564 178,670 172,413 164,500 153,730 2 18 181,564 153,730 18Mortgage Banking 234,009 233,239 229,040 223,234 214,579 — 9 234,009 214,579 9Credit Card 133,435 131,591 126,090 131,463 126,979 1 5 133,435 126,979 5Auto 64,512 64,056 62,937 60,255 57,174 1 13 64,512 57,174 13Student 7,354 7,614 7,890 8,176 8,462 (3) (13) 7,354 8,462 (13)

Total loans 463,156 460,088 448,846 445,858 429,540 1 8 463,156 429,540 8 Core loans (a) 371,060 364,007 348,802 341,881 320,415 2 16 371,060 320,415 16

Deposits 605,117 586,074 582,026 557,645 539,182 3 12 605,117 539,182 12Equity 51,000 51,000 51,000 51,000 51,000 — — 51,000 51,000 —

SELECTED BALANCE SHEET DATA (average)Total assets $ 521,882 $ 512,434 $ 503,231 $ 494,306 $ 478,914 2 9 $ 512,550 $ 465,782 10

Loans:Consumer & Business Banking 23,678 23,223 22,775 22,445 22,069 2 7 23,227 21,709 7Home equity 53,501 55,615 57,717 59,757 62,025 (4) (14) 55,604 64,442 (14)Residential mortgage and other 180,669 175,753 168,694 160,925 146,432 3 23 175,059 133,341 31Mortgage Banking 234,170 231,368 226,411 220,682 208,457 1 12 230,663 197,783 17Credit Card 132,713 128,396 127,299 127,620 126,305 3 5 129,481 125,294 3Auto 64,068 63,661 61,252 58,692 56,412 1 14 62,998 55,744 13Student 7,490 7,757 8,034 8,326 8,622 (3) (13) 7,759 8,911 (13)

Total loans 462,119 454,405 445,771 437,765 421,865 2 10 454,128 409,441 11 Core loans (a) 367,999 356,380 343,705 331,296 309,888 3 19 356,072 291,728 22

Deposits 593,671 583,115 562,284 545,734 535,987 2 11 579,741 525,951 10Equity 51,000 51,000 51,000 51,000 51,000 — — 51,000 51,000 —

Headcount 132,092 131,815 129,925 127,094 128,601 — 3 132,092 128,601 3

(a) Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, see page 28.

Page 13


CONSUMER & COMMUNITY BANKINGFINANCIAL HIGHLIGHTS, CONTINUED(in millions, except ratio data) QUARTERLY TRENDS NINE MONTHS ENDED SEPTEMBER 30,

3Q16 Change 2016 Change3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015

CREDIT DATA AND QUALITY STATISTICSNonaccrual loans (a)(b) $ 4,853 $ 4,980 $ 5,117 $ 5,313 $ 5,433 (3)% (11)% $ 4,853 $ 5,433 (11)%Net charge-offs/(recoveries) (c)Consumer & Business Banking 71 53 56 76 50 34 42 180 177 2Home equity 42 35 59 45 82 20 (49) 136 238 (43)Residential mortgage and other 7 3 1 14 (41) 133 NM 11 (12) NMMortgage Banking 49 38 60 59 41 29 20 147 226 (35)Credit Card 838 860 830 774 759 (3) 10 2,528 2,348 8Auto 79 46 67 74 57 72 39 192 140 37Student 32 29 37 55 58 10 (45) 98 155 (37)

Total net charge-offs/(recoveries) $ 1,069 $ 1,026 $ 1,050 $ 1,038 $ 965 4 11 $ 3,145 $ 3,046 3Net charge-off/(recovery) rate (c)Consumer & Business Banking 1.19% 0.92% 0.99% 1.34% 0.90 % 1.04 % 1.09 %Home equity (d) 0.42 0.34 0.55 0.40 0.70 0.44 0.66Residential mortgage and other (d) 0.02 0.01 — 0.04 (0.14) 0.01 (0.02)Mortgage Banking (d) 0.10 0.08 0.13 0.13 0.10 0.10 0.20Credit Card (e) 2.51 2.70 2.62 2.42 2.41 2.61 2.54Auto 0.49 0.29 0.44 0.50 0.40 0.41 0.34Student 1.70 1.50 1.85 2.62 2.67 1.69 2.33

Total net charge-off/(recovery) rate (d) 1.00 0.99 1.04 1.04 1.02 1.01 1.12

30+ day delinquency rateMortgage Banking (f)(g) 1.27 % 1.33 % 1.41 % 1.57 % 1.74 % 1.27 % 1.74 %Credit Card (h) 1.53 1.40 1.45 1.43 1.38 1.53 1.38Auto 1.08 1.16 0.94 1.35 1.06 1.08 1.06Student (i) 1.81 1.43 1.41 1.81 1.99 1.81 1.99

90+ day delinquency rate - Credit Card (h) 0.75 0.70 0.75 0.72 0.66 0.75 0.66

Allowance for loan lossesConsumer & Business Banking $ 703 $ 703 $ 703 $ 703 $ 703 — — $ 703 $ 703 —Mortgage Banking, excluding PCI loans 1,488 1,488 1,588 1,588 1,588 — (6) 1,488 1,588 (6)Mortgage Banking - PCI loans (c) 2,618 2,654 2,695 2,742 2,788 (1) (6) 2,618 2,788 (6)Credit Card 3,884 3,684 3,434 3,434 3,434 5 13 3,884 3,434 13Auto 474 449 399 399 374 6 27 474 374 27Student 274 274 299 299 324 — (15) 274 324 (15)

Total allowance for loan losses (c) $ 9,441 $ 9,252 $ 9,118 $ 9,165 $ 9,211 2 2 $ 9,441 $ 9,211 2Note: CCB provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, see page 28.(a) Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.(b) At September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, nonaccrual loans excluded loans 90 or more days past due as follows: (1) mortgage loans insured by U.S. government agencies of $5.0 billion, $5.2 billion, $5.7

billion, $6.3 billion and $6.6 billion, respectively; and (2) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $259 million, $252 million, $269 million, $290 million and $289 million, respectively. These amounts have been excluded based upon the government guarantee.

(c) Net charge-offs and the net charge-off rates for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, excluded write-offs in the PCI portfolio of $36 million, $41 million, $47 million, $46 million and $52 million, respectively, and for the nine months ended September 30, 2016 and 2015 excluded $124 million and $162 million, respectively. These write-offs decreased the allowance for loan losses for PCI loans. For further information on PCI write-offs, see Summary of Changes in the Allowances on page 26.

(d) Excludes the impact of PCI loans. For the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of 0.31%, 0.25%, 0.41%, 0.30% and 0.52%, respectively; (2) residential mortgage and other of 0.02%, 0.01%, –%, 0.03% and (0.11%), respectively; (3) Mortgage Banking of 0.08%, 0.07%, 0.11%, 0.11% and 0.08%, respectively; and (4) total CCB of 0.92%, 0.91%, 0.95%, 0.94% and 0.91%, respectively. For the nine months ended September 30, 2016 and 2015, the net charge-off rates including the impact of PCI loans were as follows: (1) home equity of 0.33% and 0.49%, respectively; (2) residential mortgage and other of 0.01% and (0.01%), respectively; (3) Mortgage Banking of 0.09% and 0.15%, respectively; and (4) total CCB of 0.93% and 1.00%, respectively.

(e) Average credit card loans included loans held-for-sale of $87 million, $82 million, $72 million, $717 million and $1.3 billion for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively, and $80 million and $1.9 billion for the nine months ended September 30, 2016, and 2015, respectively. These amounts are excluded when calculating the net charge-off rate.

(f) At September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, excluded mortgage loans insured by U.S. government agencies of $7.0 billion, $7.2 billion, $7.6 billion, $8.4 billion and $8.5 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.

(g) Excludes PCI loans. The 30+ day delinquency rate for PCI loans was 10.01%, 10.09%, 10.47%, 11.21% and 11.29% at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively.(h) Period-end credit card loans included loans held-for-sale of $89 million, $84 million, $78 million, $76 million and $1.3 billion at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively. These amounts are

excluded when calculating delinquency rates.(i) Excluded student loans insured by U.S government agencies under FFELP of $461 million, $458 million, $471 million, $526 million and $507 million at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively,

that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.

Page 14


CONSUMER & COMMUNITY BANKINGFINANCIAL HIGHLIGHTS, CONTINUED(in millions, except ratio data and where otherwise noted)


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015BUSINESS METRICSNumber of:

Branches 5,310 5,366 5,385 5,413 5,471 (1)% (3)% 5,310 5,471 (3)%Active digital customers (in thousands) (a) 43,657 42,833 42,458 39,242 38,511 2 13 43,657 38,511 13Active mobile customers (in thousands) (b) 26,047 24,817 23,821 22,810 22,232 5 17 26,047 22,232 17 %

Consumer & Business BankingAverage deposits $ 576,573 $ 567,415 $ 548,447 $ 530,611 $ 519,414 2 11 $ 564,190 $ 510,036 11Deposit margin 1.79 % 1.80 % 1.86 % 1.83 % 1.86 % 1.82 % 1.92 %Business banking origination volume $ 1,803 $ 2,183 $ 1,688 $ 1,609 $ 1,715 (17) 5 $ 5,674 $ 5,166 10Client investment assets 231,574 224,741 220,004 218,551 213,263 3 9 231,574 213,263 9

Mortgage Banking (in billions)Mortgage origination volume by channel

Retail $ 11.7 $ 11.2 $ 8.7 $ 8.7 $ 9.5 4 23 $ 31.6 $ 27.4 15Correspondent 15.4 13.8 13.7 13.8 20.4 12 (25) 42.9 56.5 (24)

Total mortgage origination volume (c) $ 27.1 $ 25.0 $ 22.4 $ 22.5 $ 29.9 8 (9) $ 74.5 $ 83.9 (11)Total loans serviced (period-end) $ 863.3 $ 880.3 $ 898.7 $ 910.1 $ 929.0 (2) (7) $ 863.3 $ 929.0 (7)Third-party mortgage loans serviced (period-end) 609.2 629.9 655.4 674.0 702.6 (3) (13) 609.2 702.6 (13)MSR carrying value (period-end) 4.9 5.1 5.7 6.6 6.7 (4) (27) 4.9 6.7 (27)Ratio of MSR carrying value (period-end) to third-party mortgage

loans serviced (period-end) 0.80 % 0.81 % 0.87 % 0.98 % 0.95 % 0.80 % 0.95 %MSR revenue multiple (d) 2.29x 2.31x 2.49x 2.97x 2.79x 2.29x 2.71x

Credit Card, excluding Commercial CardSales volume (in billions) $ 139.2 $ 136.0 $ 121.7 $ 130.8 $ 126.6 2 10 $ 396.9 $ 365.1 9New accounts opened 2.7 2.7 2.3 2.5 2.0 — 35 7.7 6.2 24

Card ServicesNet revenue rate 11.04 % 12.28 % 11.81 % 12.54 % 12.22 % 11.70 % 12.25 %

Commerce SolutionsMerchant processing volume (in billions) $ 267.2 $ 263.8 $ 247.5 $ 258.2 $ 235.8 1 13 $ 778.5 $ 691.1 13

AutoLoan and lease origination volume (in billions) $ 9.3 $ 8.5 $ 9.6 $ 9.2 $ 8.1 9 15 $ 27.4 $ 23.2 18Average Auto operating lease assets 11,418 10,435 9,615 8,794 8,073 9 41 10,493 7,474 40

(a) Users of all web and/or mobile platforms who have logged in within the past 90 days.(b) Users of all mobile platforms who have logged in within the past 90 days.(c) Firmwide mortgage origination volume was $30.9 billion, $28.6 billion, $24.4 billion, $24.7 billion and $32.2 billion for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively, and

$83.9 billion and $90.5 billion for the nine months ended September 30, 2016 and 2015, respectively.(d) Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average).

Page 15


CORPORATE & INVESTMENT BANKFINANCIAL HIGHLIGHTS(in millions, except ratio data)


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015INCOME STATEMENTREVENUEInvestment banking fees $ 1,855 $ 1,636 $ 1,321 $ 1,538 $ 1,612 13% 15% $ 4,812 $ 5,198 (7)%Principal transactions 3,282 2,965 2,470 1,396 2,370 11 38 8,717 8,509 2Lending- and deposit-related fees 402 385 394 387 389 4 3 1,181 1,186 —Asset management, administration and commissions 968 1,025 1,069 1,049 1,083 (6) (11) 3,062 3,418 (10)All other income 183 464 280 268 294 (61) (38) 927 744 25

Noninterest revenue 6,690 6,475 5,534 4,638 5,748 3 16 18,699 19,055 (2)Net interest income 2,765 2,690 2,601 2,431 2,420 3 14 8,056 7,418 9

TOTAL NET REVENUE (a) 9,455 9,165 8,135 7,069 8,168 3 16 26,755 26,473 1

Provision for credit losses 67 235 459 81 232 (71) (71) 761 251 203

NONINTEREST EXPENSECompensation expense 2,513 2,737 2,600 1,860 2,434 (8) 3 7,850 8,113 (3)Noncompensation expense 2,421 2,341 2,208 2,576 3,697 3 (35) 6,970 8,812 (21)

TOTAL NONINTEREST EXPENSE 4,934 5,078 4,808 4,436 6,131 (3) (20) 14,820 16,925 (12)

Income before income tax expense 4,454 3,852 2,868 2,552 1,805 16 147 11,174 9,297 20Income tax expense 1,542 1,359 889 804 341 13 352 3,790 2,955 28NET INCOME $ 2,912 $ 2,493 $ 1,979 $ 1,748 $ 1,464 17 99 $ 7,384 $ 6,342 16

FINANCIAL RATIOSROE 17% 15% 11% 10% 8% 14% 13%Overhead ratio 52 55 59 63 75 55 64Compensation expense as a percent of total net revenue 27 30 32 26 30 29 31

REVENUE BY BUSINESSInvestment Banking $ 1,740 $ 1,492 $ 1,231 $ 1,470 $ 1,530 17 14 $ 4,463 $ 4,906 (9)Treasury Services 917 892 884 901 899 3 2 2,693 2,730 (1)Lending 283 277 302 390 334 2 (15) 862 1,071 (20)

Total Banking 2,940 2,661 2,417 2,761 2,763 10 6 8,018 8,707 (8)Fixed Income Markets 4,334 3,959 3,597 2,574 2,933 9 48 11,890 10,018 19Equity Markets 1,414 1,600 1,576 1,064 1,403 (12) 1 4,590 4,630 (1)Securities Services 916 907 881 933 915 1 — 2,704 2,844 (5)Credit Adjustments & Other (b) (149) 38 (336) (263) 154 NM NM (447) 274 NM

Total Markets & Investor Services 6,515 6,504 5,718 4,308 5,405 — 21 18,737 17,766 5TOTAL NET REVENUE $ 9,455 $ 9,165 $ 8,135 $ 7,069 $ 8,168 3 16 $ 26,755 $ 26,473 1

(a) Included tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; as well as tax-exempt income from municipal bonds of $483 million, $476 million, $498 million, $486 million and $417 million for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively, and $1.5 billion and $1.2 billion for the nine months ended September 30, 2016 and 2015, respectively.

(b) Effective January 1, 2016, consists primarily of credit valuation adjustments (“CVA”) managed by the credit portfolio group, funding valuation adjustments (“FVA”) and debit valuation adjustments (“DVA”) on derivatives. Prior periods also include DVA on fair value option elected liabilities. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets. Effective January 1, 2016, changes in DVA on fair value option elected liabilities are recognized in other comprehensive income. For additional information, see Note 1 on page 28.

Page 16


CORPORATE & INVESTMENT BANKFINANCIAL HIGHLIGHTS, CONTINUED(in millions, except ratio and headcount data)


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015SELECTED BALANCE SHEET DATA (period-end)Assets $ 825,933 $ 826,019 $ 801,053 $ 748,691 $ 801,133 — % 3% $ 825,933 $ 801,133 3%Loans:

Loans retained (a) 117,133 112,637 109,132 106,908 101,420 4 15 117,133 101,420 15Loans held-for-sale and loans at fair value 4,184 5,600 2,381 3,698 3,369 (25) 24 4,184 3,369 24

Total loans 121,317 118,237 111,513 110,606 104,789 3 16 121,317 104,789 16 Core loans (b) 120,885 117,821 111,050 110,084 104,270 3 16 120,885 104,270 16

Common equity 64,000 64,000 64,000 62,000 62,000 — 3 64,000 62,000 3

SELECTED BALANCE SHEET DATA (average)Assets $ 811,217 $ 815,886 $ 797,548 $ 797,427 $ 789,975 (1) 3 $ 808,228 $ 833,233 (3)Trading assets - debt and equity instruments 306,431 306,418 285,122 291,958 288,828 — 6 299,350 306,072 (2)Trading assets - derivative receivables 63,829 61,457 62,557 59,425 63,561 4 — 62,619 69,904 (10)Loans:

Loans retained (a) 110,941 111,668 108,712 101,959 97,518 (1) 14 110,442 97,108 14Loans held-for-sale and loans at fair value 3,864 3,169 3,204 4,897 3,827 22 1 3,414 4,463 (24)

Total loans 114,805 114,837 111,916 106,856 101,345 — 13 113,856 101,571 12Core loans (b) 114,380 114,421 111,417 106,331 100,809 — 13 113,410 100,730 13

Common equity 64,000 64,000 64,000 62,000 62,000 — 3 64,000 62,000 3

Headcount 49,176 48,805 49,067 49,067 49,384 1 — 49,176 49,384 —

CREDIT DATA AND QUALITY STATISTICSNet charge-offs/(recoveries) $ 3 $ 90 $ 46 $ 5 $ 2 (97) 50 $ 139 $ (24) NMNonperforming assets:

Nonaccrual loans:Nonaccrual loans retained (a)(c) 614 623 650 428 464 (1) 32 614 464 32Nonaccrual loans held-for-sale and loans at fair value 26 7 7 10 12 271 117 26 12 117Total nonaccrual loans 640 630 657 438 476 2 34 640 476 34

Derivative receivables 232 220 212 204 235 5 (1) 232 235 (1)Assets acquired in loan satisfactions 75 75 62 62 56 — 34 75 56 34

Total nonperforming assets 947 925 931 704 767 2 23 947 767 23Allowance for credit losses:

Allowance for loan losses 1,611 1,669 1,497 1,258 1,205 (3) 34 1,611 1,205 34Allowance for lending-related commitments 837 715 744 569 547 17 53 837 547 53

Total allowance for credit losses 2,448 2,384 2,241 1,827 1,752 3 40 2,448 1,752 40

Net charge-off/(recovery) rate (a) 0.01% 0.32% 0.17% 0.02% 0.01% 0.17% (0.03)%Allowance for loan losses to period-end loans retained (a) 1.38 1.48 1.37 1.18 1.19 1.38 1.19Allowance for loan losses to period-end loans retained,

excluding trade finance and conduits (d) 2.02 2.23 2.11 1.88 1.85 2.02 1.85Allowance for loan losses to nonaccrual loans retained (a)(c) 262 268 230 294 260 262 260Nonaccrual loans to total period-end loans 0.53 0.53 0.59 0.40 0.45 0.53 0.45

(a) Loans retained includes credit portfolio loans, loans held by consolidated Firm-administered multi-seller conduits, trade finance loans, other held-for-investment loans and overdrafts.(b) Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, see page 28.(c) Allowance for loan losses of $202 million, $211 million, $233 million, $177 million and $160 million were held against nonaccrual loans at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively.(d) Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB’s allowance coverage ratio.

Page 17


CORPORATE & INVESTMENT BANKFINANCIAL HIGHLIGHTS, CONTINUED(in millions, except where otherwise noted)


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015BUSINESS METRICSAdvisory $ 542 $ 466 $ 585 $ 622 $ 503 16% 8% $ 1,593 $ 1,511 5%Equity underwriting 370 285 205 314 269 30 38 860 1,120 (23)Debt underwriting 943 885 531 602 840 7 12 2,359 2,567 (8)

Total investment banking fees $ 1,855 $ 1,636 $ 1,321 $ 1,538 $ 1,612 13 15 $ 4,812 $ 5,198 (7)

Assets under custody (“AUC”) (period-end) (in billions) $ 21,224 $ 20,470 $ 20,283 $ 19,943 $ 19,691 4 8 $ 21,224 $ 19,691 8

Client deposits and other third-party liabilities (average) (a) 381,542 373,671 358,926 364,794 372,070 2 3 371,417 405,576 (8)

Trade finance loans (period-end) 16,957 17,362 18,078 19,255 21,138 (2) (20) 16,957 21,138 (20)

95% Confidence Level - Total CIB VaR (average)(b)CIB trading VaR by risk type: (c)Fixed income $ 49 $ 46 $ 46 $ 42 $ 50 7 (2) $ 47 $ 42 12Foreign exchange 16 12 9 10 9 33 78 13 9 44Equities 8 14 22 18 20 (43) (60) 15 18 (17)Commodities and other 9 9 9 11 10 — (10) 9 9 —Diversification benefit to CIB trading VaR (d) (42) (37) (32) (31) (35) (14) (20) (38) (36) (6)

CIB trading VaR (c) 40 44 54 50 54 (9) (26) 46 42 10Credit portfolio VaR (e) 13 12 12 11 13 8 — 12 15 (20)Diversification benefit to CIB VaR (d) (10) (12) (11) (9) (10) 17 — (10) (9) (11)

CIB VaR (c) $ 43 $ 44 $ 55 $ 52 $ 57 (2) (25) $ 48 $ 48 —

(a) Client deposits and other third party liabilities pertain to the Treasury Services and Securities Services businesses.(b) CIB trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in CIB, including credit spread sensitivity to CVA. For further information, see VaR measurement on pages 135–137 of the 2015 Annual

Report, and pages 58-60 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016.(c) As part of the Firm’s continuous evaluation and periodic enhancement of its market risk measures, during the third quarter of 2016 the Firm refined the scope of positions included in risk management VaR. In particular, certain private equity positions in CIB were

removed from the VaR calculation. Commencing with the third quarter of 2016, exposure arising from these positions is captured using other sensitivity-based measures, using a 10% decline in the market value, and will be separately reported in the Firm's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016. The Firm believes this refinement to its reported VaR measures more appropriately captures the risk of its market risk sensitive positions. This refinement resulted in a reduction in average Equities VaR of $5 million, CIB trading VaR of $4 million and CIB VaR of $6 million for the three months ended September 30, 2016.

(d) Average portfolio VaR was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated.(e) Credit portfolio VaR includes the derivative CVA, hedges of the CVA and hedges of the retained loan portfolio, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value.

Page 18


COMMERCIAL BANKINGFINANCIAL HIGHLIGHTS(in millions, except ratio data)


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015INCOME STATEMENTREVENUELending- and deposit-related fees $ 228 $ 227 $ 232 $ 236 $ 229 —% — % $ 687 $ 708 (3)%Asset management, administration and commissions 14 18 22 20 22 (22) (36) 54 68 (21)All other income (a) 336 341 302 342 271 (1) 24 979 991 (1)

Noninterest revenue 578 586 556 598 522 (1) 11 1,720 1,767 (3)Net interest income 1,292 1,231 1,247 1,162 1,122 5 15 3,770 3,358 12

TOTAL NET REVENUE (b) 1,870 1,817 1,803 1,760 1,644 3 14 5,490 5,125 7

Provision for credit losses (121) (25) 304 117 82 (384) NM 158 325 (51)

NONINTEREST EXPENSECompensation expense 343 322 334 310 311 7 10 999 928 8Noncompensation expense 403 409 379 440 408 (1) (1) 1,191 1,203 (1)

TOTAL NONINTEREST EXPENSE 746 731 713 750 719 2 4 2,190 2,131 3

Income before income tax expense 1,245 1,111 786 893 843 12 48 3,142 2,669 18Income tax expense 467 415 290 343 325 13 44 1,172 1,028 14

NET INCOME $ 778 $ 696 $ 496 $ 550 $ 518 12 50 $ 1,970 $ 1,641 20

Revenue by productLending $ 956 $ 917 $ 928 $ 887 $ 850 4 12 $ 2,801 $ 2,542 10Treasury services 693 680 694 655 633 2 9 2,067 1,926 7Investment banking (c) 203 207 155 156 130 (2) 56 565 574 (2)Other 18 13 26 62 31 38 (42) 57 83 (31)

Total Commercial Banking net revenue $ 1,870 $ 1,817 $ 1,803 $ 1,760 $ 1,644 3 14 $ 5,490 $ 5,125 7

Investment banking revenue, gross (d) $ 600 $ 595 $ 483 $ 455 $ 382 1 57 $ 1,678 $ 1,724 (3)

Revenue by client segment (e)Middle Market Banking $ 716 $ 698 $ 707 $ 694 $ 668 3 7 $ 2,121 $ 2,012 5Corporate Client Banking 612 599 547 520 484 2 26 1,758 1,664 6Commercial Term Lending 350 342 361 331 318 2 10 1,053 944 12Real Estate Banking 117 107 104 96 92 9 27 328 262 25Other 75 71 84 119 82 6 (9) 230 243 (5)

Total Commercial Banking net revenue $ 1,870 $ 1,817 $ 1,803 $ 1,760 $ 1,644 3 14 $ 5,490 $ 5,125 7

FINANCIAL RATIOSROE 18 % 16 % 11 % 15 % 14 % 15 % 15 %Overhead ratio 40 40 40 43 44 40 42

(a) Includes revenue from investment banking products and commercial card transactions.(b) Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities, as well as tax-exempt income related to municipal

financing activity of $127 million, $124 million, $120 million, $149 million and $116 million for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, and $371 million and $344 million for nine months ended September 30, 2016 and 2015, respectively.

(c) Includes total Firm revenue from investment banking products sold to CB clients, net of revenue sharing with the CIB.(d) Represents total Firm revenue from investment banking products sold to CB clients.(e) Certain clients were transferred from Middle Market Banking to Corporate Client Banking and from Real Estate Banking to Corporate Client Banking effective in the second and third quarter of 2016, respectively. Prior period client segment amounts were revised to conform with

the current period presentation.

Page 19


COMMERCIAL BANKINGFINANCIAL HIGHLIGHTS, CONTINUED(in millions, except headcount and ratio data) QUARTERLY TRENDS NINE MONTHS ENDED SEPTEMBER 30,

3Q16 Change 2016 Change3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015

SELECTED BALANCE SHEET DATA (period-end)Total assets $ 212,189 $ 208,151 $ 204,602 $ 200,700 $ 201,157 2% 5% $ 212,189 $ 201,157 5%Loans:

Loans retained 185,609 179,164 173,583 167,374 162,269 4 14 185,609 162,269 14Loans held-for-sale and loans at fair value 191 134 338 267 213 43 (10) 191 213 (10)

Total loans $ 185,800 $ 179,298 $ 173,921 $ 167,641 $ 162,482 4 14 $ 185,800 $ 162,482 14 Core loans (a) 185,354 178,809 173,316 166,939 161,662 4 15 185,354 161,662 15Equity 16,000 16,000 16,000 14,000 14,000 — 14 16,000 14,000 14

Period-end loans by client segment (b)Middle Market Banking $ 53,584 $ 51,951 $ 51,644 $ 50,502 $ 51,067 3 5 $ 53,584 $ 51,067 5Corporate Client Banking 43,514 42,372 40,712 37,708 35,163 3 24 43,514 35,163 24Commercial Term Lending 69,133 66,499 64,292 62,860 60,684 4 14 69,133 60,684 14Real Estate Banking 13,905 12,872 11,656 11,234 10,457 8 33 13,905 10,457 33Other 5,664 5,604 5,617 5,337 5,111 1 11 5,664 5,111 11

Total Commercial Banking loans $ 185,800 $ 179,298 $ 173,921 $ 167,641 $ 162,482 4 14 $ 185,800 $ 162,482 14

SELECTED BALANCE SHEET DATA (average)Total assets $ 208,765 $ 205,953 $ 202,492 $ 200,325 $ 197,274 1 6 $ 205,748 $ 197,319 4Loans:

Loans retained 180,962 176,229 169,837 165,679 158,845 3 14 175,695 154,595 14Loans held-for-sale and loans at fair value 517 583 448 188 359 (11) 44 516 595 (13)

Total loans $ 181,479 $ 176,812 $ 170,285 $ 165,867 $ 159,204 3 14 $ 176,211 $ 155,190 14Core loans (a) 181,016 176,251 169,626 165,091 158,364 3 14 175,651 154,240 14

Client deposits and other third-party liabilities 173,696 170,717 173,079 178,637 180,892 2 (4) 172,502 195,874 (12)Equity 16,000 16,000 16,000 14,000 14,000 — 14 16,000 14,000 14

Average loans by client segment (b)Middle Market Banking $ 52,648 $ 51,939 $ 50,557 $ 50,926 $ 50,436 1 4 $ 51,718 $ 50,136 3Corporate Client Banking 42,139 41,109 39,348 37,581 34,314 3 23 40,870 33,454 22Commercial Term Lending 67,696 65,262 63,475 61,574 59,323 4 14 65,486 56,980 15Real Estate Banking 13,382 12,936 11,464 10,742 10,074 3 33 12,597 9,640 31Other 5,614 5,566 5,441 5,044 5,057 1 11 5,540 4,980 11

Total Commercial Banking loans $ 181,479 $ 176,812 $ 170,285 $ 165,867 $ 159,204 3 14 $ 176,211 $ 155,190 14

Headcount 8,333 8,127 7,971 7,845 7,735 3 8 8,333 7,735 8

CREDIT DATA AND QUALITY STATISTICSNet charge-offs/(recoveries) $ 44 $ 60 $ 6 $ 16 $ (2) (27) NM $ 110 $ 5 NMNonperforming assets

Nonaccrual loans:Nonaccrual loans retained (c) 1,212 1,258 1,257 375 423 (4) 187 1,212 423 187Nonaccrual loans held-for-sale and loans

at fair value — — — 18 16 — (100) — 16 (100)Total nonaccrual loans 1,212 1,258 1,257 393 439 (4) 176 1,212 439 176

Assets acquired in loan satisfactions 1 1 1 8 4 — (75) 1 4 (75)Total nonperforming assets 1,213 1,259 1,258 401 443 (4) 174 1,213 443 174

Allowance for credit losses:Allowance for loan losses 2,858 3,041 3,099 2,855 2,782 (6) 3 2,858 2,782 3Allowance for lending-related commitments 244 226 252 198 170 8 44 244 170 44

Total allowance for credit losses 3,102 3,267 3,351 3,053 2,952 (5) 5 3,102 2,952 5

Net charge-off/(recovery) rate (d) 0.10 % 0.14 % 0.01 % 0.04 % — % 0.08 % — %Allowance for loan losses to period-end loans retained 1.54 1.70 1.79 1.71 1.71 1.54 1.71Allowance for loan losses to nonaccrual loans retained (c) 236 242 247 761 658 236 658Nonaccrual loans to period-end total loans 0.65 0.70 0.72 0.23 0.27 0.65 0.27

(a) Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, see page 28.(b) Certain clients were transferred from Middle Market Banking to Corporate Client Banking and from Real Estate Banking to Corporate Client Banking effective in the second and third quarter of 2016, respectively. Prior period client segment amounts were revised to conform with

the current period presentation.(c) Allowance for loan losses of $221 million, $292 million, $278 million, $64 million and $80 million was held against nonaccrual loans retained at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively.(d) Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.

Page 20


ASSET MANAGEMENTFINANCIAL HIGHLIGHTS(in millions, except ratio and headcount data)


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015INCOME STATEMENTREVENUEAsset management, administration and commissions $ 2,087 $ 2,102 $ 2,016 $ 2,328 $ 2,237 (1)% (7)% $ 6,205 $ 6,847 (9)%All other income 190 90 229 46 24 111 NM 509 342 49

Noninterest revenue 2,277 2,192 2,245 2,374 2,261 4 1 6,714 7,189 (7)Net interest income 770 747 727 671 633 3 22 2,244 1,885 19

TOTAL NET REVENUE 3,047 2,939 2,972 3,045 2,894 4 5 8,958 9,074 (1)

Provision for credit losses 32 (8) 13 17 (17) NM NM 37 (13) NM

NONINTEREST EXPENSECompensation expense 1,279 1,249 1,241 1,307 1,218 2 5 3,769 3,806 (1)Noncompensation expense 851 849 834 889 891 — (4) 2,534 2,884 (12)

TOTAL NONINTEREST EXPENSE 2,130 2,098 2,075 2,196 2,109 2 1 6,303 6,690 (6)

Income before income tax expense 885 849 884 832 802 4 10 2,618 2,397 9Income tax expense 328 328 297 325 327 — — 953 969 (2)

NET INCOME $ 557 $ 521 $ 587 $ 507 $ 475 7 17 $ 1,665 $ 1,428 17

REVENUE BY LINE OF BUSINESSGlobal Investment Management $ 1,497 $ 1,424 $ 1,499 $ 1,615 $ 1,483 5 1 $ 4,420 $ 4,686 (6)Global Wealth Management 1,550 1,515 1,473 1,430 1,411 2 10 4,538 4,388 3

TOTAL NET REVENUE $ 3,047 $ 2,939 $ 2,972 $ 3,045 $ 2,894 4 5 $ 8,958 $ 9,074 (1)

FINANCIAL RATIOSROE 24 % 22 % 25 % 21 % 20 % 24 % 20 %Overhead ratio 70 71 70 72 73 70 74Pretax margin ratio:

Global Investment Management 31 30 33 36 31 31 29Global Wealth Management 27 28 26 17 24 27 24Asset Management 29 29 30 27 28 29 26

Headcount 21,142 20,897 20,885 20,975 20,651 1 2 21,142 20,651 2

Number of client advisors 2,560 2,622 2,750 2,778 2,796 (2) (8) 2,560 2,796 (8)

Page 21


ASSET MANAGEMENTFINANCIAL HIGHLIGHTS, CONTINUED(in millions, except ratio data)


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015SELECTED BALANCE SHEET DATA (period-end)Total assets $ 137,295 $ 134,380 $ 131,276 $ 131,451 $ 131,412 2% 4% $ 137,295 $ 131,412 4 %Loans (a) 116,043 113,319 111,050 111,007 110,314 2 5 116,043 110,314 5 Core loans (b) 116,043 113,319 111,050 111,007 110,314 2 5 116,043 110,314 5Deposits 157,274 148,967 152,908 146,766 140,121 6 12 157,274 140,121 12Equity 9,000 9,000 9,000 9,000 9,000 — — 9,000 9,000 —

SELECTED BALANCE SHEET DATA (average)Total assets $ 134,920 $ 131,529 $ 129,790 $ 130,980 $ 131,100 3 3 $ 132,090 $ 129,326 2Loans 114,201 111,704 110,497 110,305 108,741 2 5 112,142 106,446 5 Core loans (b) 114,201 111,704 110,497 110,305 108,741 2 5 112,142 106,446 5Deposits 153,121 151,214 150,616 145,623 141,896 1 8 151,656 150,840 1Equity 9,000 9,000 9,000 9,000 9,000 — — 9,000 9,000 —

CREDIT DATA AND QUALITY STATISTICSNet charge-offs $ 5 $ 2 $ 9 $ 8 $ 2 150% 150 $ 16 $ 4 300 %Nonaccrual loans 372 254 335 218 229 46 62 372 229 62Allowance for credit losses:

Allowance for loan losses 285 258 270 266 258 10 10 285 258 10Allowance for lending-related commitments 5 4 4 5 4 25 25 5 4 25

Total allowance for credit losses 290 262 274 271 262 11 11 290 262 11Net charge-off/(recovery) rate 0.02 % 0.01 % 0.03 % 0.03 % 0.01 % 0.02 % 0.01 %Allowance for loan losses to period-end loans 0.25 0.23 0.24 0.24 0.23 0.25 0.23Allowance for loan losses to nonaccrual loans 77 102 81 122 113 77 113Nonaccrual loans to period-end loans 0.32 0.22 0.30 0.20 0.21 0.32 0.21

(a) Included $30.7 billion, $29.2 billion, $27.7 billion, $26.6 billion, and $25.4 billion of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively.

(b) Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, see page 28.

Page 22


ASSET MANAGEMENTFINANCIAL HIGHLIGHTS, CONTINUED(in billions)

Sep 30, 2016Change NINE MONTHS ENDED SEPTEMBER 30,

Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Sep 30, 2016 ChangeCLIENT ASSETS 2016 2016 2016 2015 2015 2016 2015 2016 2015 2015Assets by asset classLiquidity $ 447 $ 426 $ 424 $ 464 $ 463 5% (3)% $ 447 $ 463 (3)%Fixed income 393 383 365 342 351 3 12 393 351 12Equity 357 342 346 353 336 4 6 357 336 6Multi-asset and alternatives 575 542 541 564 561 6 2 575 561 2

TOTAL ASSETS UNDER MANAGEMENT 1,772 1,693 1,676 1,723 1,711 5 4 1,772 1,711 4Custody/brokerage/administration/deposits 675 651 647 627 612 4 10 675 612 10

TOTAL CLIENT ASSETS $ 2,447 $ 2,344 $ 2,323 $ 2,350 $ 2,323 4 5 $ 2,447 $ 2,323 5

Memo:Alternatives client assets (a) $ 157 $ 151 $ 151 $ 172 $ 172 4 (9) $ 157 $ 172 (9)

Assets by client segmentPrivate Banking $ 433 $ 425 $ 428 $ 437 $ 438 2 (1) $ 433 $ 438 (1)Institutional 862 811 798 816 816 6 6 862 816 6Retail 477 457 450 470 457 4 4 477 457 4

TOTAL ASSETS UNDER MANAGEMENT $ 1,772 $ 1,693 $ 1,676 $ 1,723 $ 1,711 5 4 $ 1,772 $ 1,711 4

Private Banking $ 1,089 $ 1,058 $ 1,057 $ 1,050 $ 1,037 3 5 $ 1,089 $ 1,037 5Institutional 879 827 814 824 823 6 7 879 823 7Retail 479 459 452 476 463 4 3 479 463 3

TOTAL CLIENT ASSETS $ 2,447 $ 2,344 $ 2,323 $ 2,350 $ 2,323 4 5 $ 2,447 $ 2,323 5

Assets under management rollforwardBeginning balance $ 1,693 $ 1,676 $ 1,723 $ 1,711 $ 1,781 $ 1,723 $ 1,744Net asset flows:

Liquidity 22 4 (27) (1) (5) (1) —Fixed income 5 10 11 (7) (5) 26 —Equity (7) (5) (5) 3 (5) (17) (2)Multi-asset and alternatives 21 (2) 6 (5) 6 25 27

Market/performance/other impacts 38 10 (32) 22 (61) 16 (58)Ending balance $ 1,772 $ 1,693 $ 1,676 $ 1,723 $ 1,711 $ 1,772 $ 1,711

Client assets rollforwardBeginning balance $ 2,344 $ 2,323 $ 2,350 $ 2,323 $ 2,423 $ 2,350 $ 2,387Net asset flows 47 2 (7) 1 (7) 42 26Market/performance/other impacts 56 19 (20) 26 (93) 55 (90)

Ending balance $ 2,447 $ 2,344 $ 2,323 $ 2,350 $ 2,323 $ 2,447 $ 2,323

(a) Represents assets under management, as well as client balances in brokerage accounts.

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CORPORATEFINANCIAL HIGHLIGHTS(in millions, except headcount data)


3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015INCOME STATEMENTREVENUEPrincipal transactions $ 57 $ 29 $ 97 $ (56) $ (70) 97% NM $ 183 $ 97 89%Securities gains 64 20 51 72 25 220 156 135 118 14All other income (a) 76 122 121 571 118 (38) (36) 319 (2) NM

Noninterest revenue 197 171 269 587 73 15 170 637 213 199Net interest income (385) (329) (213) 64 (123) (17) (213) (927) (597) (55)

TOTAL NET REVENUE (b) (188) (158) 56 651 (50) (19) (276) (290) (384) 24

Provision for credit losses (1) (1) (2) (2) (4) — 75 (4) (8) 50

NONINTEREST EXPENSE (c) 143 (273) 153 609 172 NM (17) 23 368 (94)Income/(loss) before income tax expense/(benefit) (330) 116 (95) 44 (218) NM (51) (309) (744) 58Income tax expense/(benefit) (d) (165) 282 (63) (178) (1,935) NM 91 54 (2,959) NM

NET INCOME/(LOSS) $ (165) $ (166) $ (32) $ 222 $ 1,717 1 NM $ (363) $ 2,215 NM

MEMO:TOTAL NET REVENUETreasury and Chief Investment Office (“CIO”) (211) (226) (94) 137 (89) 7 (137) (531) (630) 16Other Corporate 23 68 150 514 39 (66) (41) 241 246 (2)

TOTAL NET REVENUE $ (188) $ (158) $ 56 $ 651 $ (50) (19) (276) $ (290) $ (384) 24

NET INCOME/(LOSS)Treasury and CIO (208) (199) (111) 138 (40) (5) (420) (518) (373) (39)Other Corporate 43 33 79 84 1,757 30 (98) 155 2,588 (94)

TOTAL NET INCOME/(LOSS) $ (165) $ (166) $ (32) $ 222 $ 1,717 1 NM $ (363) $ 2,215 NM

SELECTED BALANCE SHEET DATA (period-end)Total assets $ 824,336 $ 778,359 $ 781,806 $ 768,204 $ 798,680 6 3 $ 824,336 $ 798,680 3Loans 1,738 1,862 1,983 2,187 2,332 (7) (25) 1,738 2,332 (25)

Core loans (e)(f) 1,735 1,857 1,978 2,182 2,327 (7) (25) 1,735 2,327 (25)

Headcount 31,572 30,402 29,572 29,617 29,307 4 8 31,572 29,307 8

SUPPLEMENTAL INFORMATIONTREASURY and CIOSecurities gains $ 64 $ 20 $ 51 $ 72 $ 25 220% 156% $ 135 $ 118 14%Investment securities portfolio (average) (g) 271,816 278,962 283,443 296,693 306,370 (3) (11) 278,051 320,905 (13)Investment securities portfolio (period-end) (h) 269,207 275,562 282,424 287,777 303,057 (2) (11) 269,207 303,057 (11)Mortgage loans (average) 1,722 1,858 2,005 2,221 2,400 (7) (28) 1,861 2,595 (28)Mortgage loans (period-end) 1,661 1,798 1,927 2,136 2,293 (8) (28) 1,661 2,293 (28)

Private equity portfolioCarrying value $ 1,893 $ 1,879 $ 2,004 $ 2,103 $ 2,192 1 (14) $ 1,893 $ 2,192 (14)Cost 2,951 2,941 3,512 3,798 3,832 — (23) 2,951 3,832 (23)

(a) Included revenue related to a legal settlement of $514 million for the three months ended December 31, 2015. (b) Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $218 million, $227 million, $218 million, $219 million, and $215 million for the three months ended September 30, 2016, June 30, 2016, March 31, 2016,

December 31, 2015, and September 30, 2015, respectively, and $663 million and $620 million for the nine months ended September 30, 2016, and 2015, respectively.(c) Included legal expense/(benefit) of $(85) million, $(467) million, and $407 million for the three months ended September 30, 2016, June 30, 2016, and December 31, 2015, respectively; and $(550) million and $425 million for the nine months ended September 30, 2016, and

2015, respectively. Legal expense/(benefit) for the three months ended March 31, 2016 was not material. (d) The three and nine months ended September 30, 2015 reflected tax benefits of $1.9 billion and $2.4 billion, respectively, due to the resolution of various tax audits.(e) Average core loans were $1.8 billion, $2.0 billion, $2.1 billion, $2.3 billion, and $2.4 billion for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively, and $1.9 billion and $2.6 billion for the nine

months ended September 30, 2016 and 2015, respectively.(f) Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, see page 28.(g) Average investment securities included held-to-maturity balances of $52.8 billion, $53.4 billion, $48.3 billion, $49.5 billion, and $50.7 billion for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015,

respectively, and $51.5 billion and $50.2 billion for the nine months ended September 30, 2016, and 2015, respectively.(h) Period-end investment securities included held-to-maturity balances of $52.0 billion, $53.8 billion, $47.9 billion, $49.1 billion, and $50.2 billion at September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, respectively.

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CREDIT-RELATED INFORMATION(in millions)

Sep 30, 2016Change


CREDIT EXPOSUREConsumer, excluding credit card loans (a)

Loans retained, excluding PCI loans $ 326,353 $ 322,690 $ 314,128 $ 303,357 $ 289,496 1% 13%Loans - PCI 37,045 38,360 39,743 40,998 42,236 (3) (12)Total loans retained 363,398 361,050 353,871 344,355 331,732 1 10Loans held-for-sale 398 255 321 466 237 56 68

Total consumer, excluding credit card loans 363,796 361,305 354,192 344,821 331,969 1 10

Credit card loansLoans retained 133,346 131,507 126,012 131,387 125,634 1 6Loans held-for-sale 89 84 78 76 1,345 6 (93)

Total credit card loans 133,435 131,591 126,090 131,463 126,979 1 5Total consumer loans 497,231 492,896 480,282 476,284 458,948 1 8

Wholesale loans (b)Loans retained 386,449 374,174 364,312 357,050 346,927 3 11Loans held-for-sale and loans at fair value 4,374 5,734 2,719 3,965 3,582 (24) 22

Total wholesale loans 390,823 379,908 367,031 361,015 350,509 3 12

Total loans 888,054 872,804 847,313 837,299 809,457 2 10

Derivative receivables 65,579 78,446 70,209 59,677 68,668 (16) (4)Receivables from customers and other (c) 19,163 14,426 16,294 13,497 17,016 33 13Total credit-related assets 84,742 92,872 86,503 73,174 85,684 (9) (1)

Lending-related commitmentsConsumer, excluding credit card 59,990 59,224 60,744 58,478 60,005 1 —Credit card 549,634 539,105 532,224 515,518 526,433 2 4Wholesale 368,987 357,145 367,466 366,399 354,348 3 4Total lending-related commitments 978,611 955,474 960,434 940,395 940,786 2 4

Total credit exposure $ 1,951,407 $ 1,921,150 $ 1,894,250 $ 1,850,868 $ 1,835,927 2 6

Memo: Total by categoryConsumer exposure (d) $ 1,106,980 $ 1,091,363 $ 1,073,377 $ 1,050,405 $ 1,045,505 1 6Wholesale exposures (e) 844,427 829,787 820,873 800,463 790,422 2 7Total credit exposure $ 1,951,407 $ 1,921,150 $ 1,894,250 $ 1,850,868 $ 1,835,927 2 6

Note: The Firm provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, see page 28.

(a) Includes loans reported in CCB, prime mortgage and home equity loans reported in AM, and prime mortgage loans reported in Corporate.(b) Includes loans reported in CIB, CB and AM business segments and Corporate.(c) Predominantly includes receivables from customers, which represent margin loans to prime and retail brokerage customers; these are classified in accrued interest and accounts receivable on the Consolidated balance sheets.(d) Represents total consumer loans and lending-related commitments.(e) Represents total wholesale loans and lending-related commitments, derivative receivables and receivables from customers.

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CREDIT-RELATED INFORMATION, CONTINUED(in millions, except ratio data)

Sep 30, 2016Change


NONPERFORMING ASSETS (a)Consumer nonaccrual loans (b)(c) $ 4,961 $ 5,085 $ 5,225 $ 5,413 $ 5,530 (2) (10)

Wholesale nonaccrual loansLoans retained 2,151 2,093 2,203 988 1,086 3 98Loans held-for-sale and loans at fair value 26 7 7 28 28 271 (7)

Total wholesale nonaccrual loans 2,177 2,100 2,210 1,016 1,114 4 95

Total nonaccrual loans 7,138 7,185 7,435 6,429 6,644 (1) 7

Derivative receivables 232 220 212 204 235 5 (1)Assets acquired in loan satisfactions 409 352 376 401 415 16 (1)Total nonperforming assets 7,779 7,757 8,023 7,034 7,294 — 7Wholesale lending-related commitments (d) 503 460 722 193 176 9 186Total nonperforming exposure $ 8,282 $ 8,217 $ 8,745 $ 7,227 $ 7,470 1 11

NONACCRUAL LOAN-RELATED RATIOSTotal nonaccrual loans to total loans 0.80% 0.82% 0.88% 0.77% 0.82%Total consumer, excluding credit card nonaccrual loans to

total consumer, excluding credit card loans 1.36 1.41 1.48 1.57 1.67Total wholesale nonaccrual loans to total

wholesale loans 0.56 0.55 0.60 0.28 0.32

(a) At September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $5.0 billion, $5.2 billion, $5.7 billion, $6.3 billion and $6.6 billion, respectively, that are 90 or more days past due; (2) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $259 million, $252 million, $269 million, $290 million and $289 million, respectively, that are 90 or more days past due; (3) real estate owned (“REO”) insured by U.S. government agencies of $163 million, $355 million, $360 million, $343 million and $327 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”). Under this guidance, non-modified credit card loans are charged off by the end of the month in which the account becomes 180 days past due, while modified credit card loans are charged off when the account becomes 120 days past due. Moreover, all credit card loans must be charged off within 60 days of receiving notification about certain specified events (e.g., bankruptcy of the borrower).

(b) Included nonaccrual loans held-for-sale of $53 million, $61 million and $98 million at September 30, 2016, March 31, 2016, and December 31, 2015, respectively. There were no nonaccrual loans held-for-sale at June 30, 2016 or September 30, 2015.(c) Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.(d) Represents commitments that are risk rated as nonaccrual.

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3Q16 2Q16 1Q16 4Q15 3Q15 2Q16 3Q15 2016 2015 2015SUMMARY OF CHANGES IN THE ALLOWANCESALLOWANCE FOR LOAN LOSSESBeginning balance $ 14,227 $ 13,994 $ 13,555 $ 13,466 $ 13,915 2% 2% $ 13,555 $ 14,185 (4)%Net charge-offs:

Gross charge-offs 1,375 1,433 1,357 1,300 1,305 (4) 5 4,165 3,941 6Gross recoveries (254) (252) (247) (236) (342) (1) 26 (753) (919) 18

Net charge-offs 1,121 1,181 1,110 1,064 963 (5) 16 3,412 3,022 13Write-offs of PCI loans and other (a) 36 41 47 46 52 (12) (31) 124 162 (23)

Provision for loan losses 1,132 1,456 1,596 1,200 567 (22) 100 4,184 2,463 70Other 2 (1) — (1) (1) NM NM 1 2 (50)Ending balance $ 14,204 $ 14,227 $ 13,994 $ 13,555 $ 13,466 — 5 $ 14,204 $ 13,466 5

ALLOWANCE FOR LENDING-RELATED COMMITMENTSBeginning balance $ 960 $ 1,014 $ 786 $ 735 $ 620 (5) 55 $ 786 $ 622 26Provision for lending-related commitments 139 (54) 228 51 115 NM 21 313 113 177Other 1 — — — — NM NM 1 — NMEnding balance $ 1,100 $ 960 $ 1,014 $ 786 $ 735 15 50 $ 1,100 $ 735 50

Total allowance for credit losses $ 15,304 $ 15,187 $ 15,008 $ 14,341 $ 14,201 1 8 $ 15,304 $ 14,201 8

NET CHARGE-OFF/(RECOVERY) RATESConsumer retained, excluding credit card loans (b) 0.26% 0.19% 0.25% 0.31% 0.25% 0.23% 0.30%Credit card retained loans 2.51 2.70 2.62 2.42 2.41 2.61 2.54Total consumer retained loans 0.86 0.85 0.89 0.88 0.85 0.87 0.93Wholesale retained loans 0.05 0.17 0.07 0.03 — 0.09 (0.01)Total retained loans 0.51 0.56 0.53 0.52 0.49 0.53 0.53Consumer retained loans, excluding credit card and

PCI loans 0.29 0.21 0.29 0.35 0.29 0.26 0.35Consumer retained loans, excluding PCI loans 0.93 0.92 0.97 0.97 0.94 0.94 1.04Total retained, excluding PCI loans 0.54 0.58 0.56 0.54 0.51 0.56 0.56

Memo: Average retained loansConsumer retained, excluding credit card loans $ 362,457 $ 357,602 $ 348,916 $ 339,637 $ 323,458 1 12 $ 356,347 $ 311,527 14Credit card retained loans 132,626 128,314 127,227 126,903 125,048 3 6 129,401 123,387 5

Total average retained consumer loans 495,083 485,916 476,143 466,540 448,506 2 10 485,748 434,914 12Wholesale retained loans 374,593 369,706 360,306 350,370 339,172 1 10 368,225 333,038 11

Total average retained loans $ 869,676 $ 855,622 $ 836,449 $ 816,910 $ 787,678 2 10 $ 853,973 $ 767,952 11

Consumer retained, excluding credit card andPCI loans $ 324,741 $ 318,556 $ 308,526 $ 298,047 $ 280,475 2 16 $ 317,301 $ 267,054 19

Consumer retained, excluding PCI loans 457,367 446,870 435,753 424,950 405,524 2 13 446,702 390,441 14Total retained, excluding PCI loans 831,956 816,572 796,055 775,316 744,692 2 12 814,923 723,475 13

(a) Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool (e.g., upon liquidation).

(b) The net charge-off rates exclude the write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans.

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Sep 30, 2016Change


ALLOWANCE COMPONENTS AND RATIOSALLOWANCE FOR LOAN LOSSESConsumer, excluding credit card

Asset-specific (a) $ 352 $ 365 $ 371 $ 364 $ 359 (4)% (2)%Formula-based 2,667 2,627 2,694 2,700 2,702 2 (1)PCI 2,618 2,654 2,695 2,742 2,788 (1) (6)

Total consumer, excluding credit card 5,637 5,646 5,760 5,806 5,849 — (4)Credit card

Asset-specific (a)(b) 363 361 427 460 485 1 (25)Formula-based 3,521 3,323 3,007 2,974 2,949 6 19

Total credit card 3,884 3,684 3,434 3,434 3,434 5 13Total consumer 9,521 9,330 9,194 9,240 9,283 2 3

WholesaleAsset-specific (a) 490 525 565 274 281 (7) 74Formula-based 4,193 4,372 4,235 4,041 3,902 (4) 7

Total wholesale 4,683 4,897 4,800 4,315 4,183 (4) 12Total allowance for loan losses 14,204 14,227 13,994 13,555 13,466 — 5Allowance for lending-related commitments 1,100 960 1,014 786 735 15 50Total allowance for credit losses $ 15,304 $ 15,187 $ 15,008 $ 14,341 $ 14,201 1 8

CREDIT RATIOSConsumer, excluding credit card allowance, to total

consumer, excluding credit card retained loans 1.55% 1.56% 1.63% 1.69% 1.76%Credit card allowance to total credit card retained loans 2.91 2.80 2.73 2.61 2.73Wholesale allowance to total wholesale retained loans 1.21 1.31 1.32 1.21 1.21Wholesale allowance to total wholesale retained loans,

excluding trade finance and conduits (c) 1.33 1.45 1.47 1.35 1.34Total allowance to total retained loans 1.61 1.64 1.66 1.63 1.67Consumer, excluding credit card allowance, to consumer,

excluding credit card retained nonaccrual loans (d) 115 111 112 109 106Total allowance, excluding credit card allowance, to retained

nonaccrual loans, excluding credit card nonaccrual loans (d) 146 147 143 161 152Wholesale allowance to wholesale retained nonaccrual loans 218 234 218 437 385Total allowance to total retained nonaccrual loans 201 198 190 215 204

CREDIT RATIOS, excluding PCI loansConsumer, excluding credit card allowance, to total

consumer, excluding credit card retained loans 0.93 0.93 0.98 1.01 1.06Total allowance to total retained loans 1.37 1.40 1.40 1.37 1.40Consumer, excluding credit card allowance, to consumer,

excluding credit card retained nonaccrual loans (d) 62 59 59 58 55Allowance, excluding credit card allowance, to retained non-

accrual loans, excluding credit card nonaccrual loans (d) 109 110 107 117 109Total allowance to total retained nonaccrual loans 164 161 153 172 161

(a) Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a troubled debt restructuring (“TDR”).(b) The asset-specific credit card allowance for loan losses relates to loans that have been modified in a TDR; the Firm calculates such allowance based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.(c) Management uses allowance for loan losses to period-end loans retained, excluding CIB’s trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of the wholesale allowance coverage ratio.(d) For information on the Firm’s nonaccrual policy for credit card loans, see footnote (a) on page 25.

Page 28


NON-GAAP FINANCIAL MEASURES, KEY PERFORMANCE MEASURES AND OTHER NOTES

Non-GAAP Financial Measures

(a) In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results, including the overhead ratio, and the results of the lines of business on a “managed” basis, which are non-GAAP financial measures. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on a FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These non-GAAP financial measures allow management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business.

(b) The ratios of the allowance for loan losses to period-end loans retained, the allowance for loan losses to nonaccrual loans retained, and nonaccrual loans to total period-end loans excluding credit card and PCI loans, exclude the following: loans accounted for at fair value and loans held-for-sale; PCI loans; and the allowance for loan losses related to PCI loans. Additionally, net charge-offs and net charge-off rates exclude the impact of PCI loans. The ratio of the wholesale allowance for loan losses to period-end loans retained, excluding trade finance and conduits, is calculated excluding loans accounted for at fair value, loans held-for-sale, CIB’s trade finance loans and consolidated Firm-administered multi-seller conduits, as well as their related allowances, to provide a more meaningful assessment of the wholesale allowance coverage ratio.

(c) CIB calculates the ratio of the allowance for loan losses to end-of-period loans excluding the impact of consolidated Firm-administered multi-seller conduits and trade finance loans, to provide a more meaningful assessment of CIB’s allowance coverage ratio.

Key Performance Measures

(a) Core loans include loans considered central to the Firm’s ongoing businesses; core loans exclude loans classified as trading assets, runoff portfolios, discontinued portfolios and portfolios the Firm has an intent to exit.

(b) Tangible common equity (“TCE”), Return on tangible common equity (“ROTCE”), and Tangible book value per share (“TBVPS”) are considered key financial performance measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. TCE, ROTCE, and TBVPS are meaningful to the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.

Other Notes

(1) Effective January 1, 2016, the Firm adopted new accounting guidance related to the recognition and measurement of financial liabilities where the fair value option has been elected. This guidance requires the portion of the total change in fair value caused by changes in the Firm’s own credit risk (DVA) to be presented separately in other comprehensive income; previously these amounts were recognized in net income. The guidance was required to be applied as of the beginning of the fiscal year of adoption via a cumulative effect adjustment to the Consolidated balance sheet, which resulted in a reclassification from retained earnings to accumulated other comprehensive income. The adoption of this guidance had no material impact on the Firm’s Consolidated Financial Statements.

(2) Effective January 1, 2016, the Firm adopted new accounting guidance related to share-based payments, including the accounting for income taxes and classification in the statement of cash flows. The guidance requires that all excess tax benefits and tax deficiencies that pertain to share-based payment arrangements be recognized within income tax expense in the Consolidated statements of income; previously such amounts were recognized within additional paid-in capital. The adoption of this guidance had no material impact on the Firm’s Consolidated Financial Statements.

Documents

ERF Supplement 3Q16 - FINAL - JPMorgan Chase · Title: ERF Supplement 3Q16 - FINAL Created Date: 201601013183